6 tips for buying property at auction
We round up our top tips for buying property at auction, so you can shake those nerves and celebrate the purchase of your dream home!
Buying property at action can be really nerve racking and it can evoke all kinds of emotions for those involved.
However with a few simple tips, we can help you get ready for auction day and buy your dream home under the hammer.
Bid at auction with confidence
The wait and see strategy is a popular one amongst purchasers but it does pay to take control early on.
According to Justin Nickerson from Apollo Auctions, 68% of opening bidders, are the successful purchasers. Bid with confidence and without hesitation.
You are much better to set the tone and show your competition that you intend to buy, than sit back and potentially be on the back foot.
Take advantage of your buying power
Not everyone can bid at auction. There may be strong interest in the property but you might be surprised to see only a handful are able to bid under the cash-unconditional terms of an auction.
Other buyers may still require finance approval or building and pest inspections before they are able to purchase.
Bidding for property under auction terms
If you are in a position to purchase at auction, you may actually find you have less competition on the day.
Again, this is because not every buyer will be able to purchase under auction terms.
If a property “passes in” at auction (does not sell), often several buyers come forward afterwards seeking to buy with a range of special conditions attached to their offer.
This then places buyers in competition with each other post-auction.
Cash unconditional sales
Many buyers have secured excellent value at auction simply because a cash-unconditional contract was a high priority for the seller.
The seller chose to take the maximum bid under auction conditions, rather than consider potentially higher offers that were subject to conditions after the auction had ended.
Bidding at auction is often the best opportunity for you to secure your dream home at the price you are comfortable paying.
Watch the body language of other bidders
On auction day, assess the crowd and determine who else will be bidding.
Once you have your eye on the competition, stand in a position that allows you to see their body language.
When the auction gets going, most buyers will begin to show signs of their position or if they are reaching their buying limit.
Get involved in the auction
It’s tempting to play your cards close to your chest, especially when it feels like the world is watching you. But on auction day, everyone is there for the same reason.
The seller is ready to see the hammer come down, the buyers are keen to buy their dream home, both parties are usually as nervous as each other.
Raise your paddle and don’t be afraid to bid. You might be surprised to find your new home is closer than you think!
Researching the market?
Find out exactly what’s happening in your suburb with our 2019 Local Market Report.
- Explore the change in property values over the past 5 years for Toowong, Taringa, Indooroopilly and St Lucia.
- We shine the spotlight on all four suburbs.
- Understand what the Brisbane property market will do in 2019.
- Investigate the trends currently affecting our inner-western suburbs.
- Compare the performance of Sydney, Melbourne & Brisbane.