Preparing For Auction
Posted by Rebekah Hutton on Thu, Nov 2018
Property auctions have quickly become linked with feelings of stress, pressure, and fear due to the confronting and intense environment. Buying a house however, should be an exciting and happy experience for the buyer.
There are ways you can prepare yourself and become more comfortable and relaxed with the auction process…
Practise Makes Perfect
To become familiar and acclimatise yourself with the auction process, attend as many auctions as possible. This will ensure you become accustomed to the process and won’t encounter any surprises on the big day. You want to grasp a clear understanding and confidence on how it all plays out and witness the variety of different outcomes that could occur. This will ensure you are much more at ease when the pressure is on you. It’s important to attend auctions near your desired area, so you can understand the type of interest levels you’ll be competing against. It’s also a good idea to become familiar with the Auctioneers in your area as everyone is slightly different in manner, flair, interaction with the audience, and their strategies to induce the highest price on the day.
Knowledge is power, and you’ll feel much more equipped if you thoroughly do your research. A great place to start is looking at the recent sales in the same area as your desired property. This way you can accurately draw comparisons to help you determine how much the property is worth. Research the property thoroughly, ask the agent for the ‘Section 32’ and if there’s anything that needs to be disclosed about the home. It’s important to consider things such as ‘what’s included on the title?’ and ‘is there an active body corporate?’. It’s also important to gain knowledge around the real estate jargon and terms that are used in the industry. Become familiar with phrases such as ‘passed in’ and ‘on the market’. You’ll feel much more comfortable if you have a firm understanding on each stage of the process.
Head Over Heart
Be clear in your mind about your limit and price constraints prior to bidding in the auction. In the heat of the moment, when the pressure is on and your emotions are running high it’s hard to remain calm and rational. By being confident in your research and having a clear conclusion on your willingness to bid on a certain price, you’ll feel much more content and in control regardless of the outcome. Have your finances lined up and loan approval confirmed prior to bidding and have a clear understanding on what your mortgage repayments would look like at the said price before committing.
For any further advice on preparing for auction as a potential buyer, contact your local Hodges property professional today.