It’s true, bidding at an auction can be stressful. Your dream home is on the line, in a race against others with the same goal in mind.
Never fear, first time auction goers. We’ve come up with the ultimate guide to help you navigate your first auction from start to finish.
1. BE PREPARED
Before stepping foot into the auction ring, it’s essential to have home loan pre-approval so you know your bidding limits. It takes a world of stress away, and puts you in a good position during the negotiations. You’re in luck, fellow home buyers, because we have our very own in-house Mortgage Adviser from Loan Market. The best part? They aren’t owned by a bank, which means they work for you. You’ll also want to get your inspections out of the way ahead of time (builder, plumber, electrician, pest control), as the sale at auction is final. No nasty surprises are welcome here.
2. VISIT LOCAL AUCTIONS
Knowledge is power, right? If you attend a few auctions before bidding, we can guarantee it will ease the stress, and give you an opportunity to understand the ins and outs of bidding language and pace. It is also essential to be familiar with the local Brisbane market; take the time to do your research, and feel free to ask your agent for all the help you need to guarantee you bid appropriately.
3. GET YOUR PROPERTY DEPOSIT IN ORDER
All going well, your bid will be the successful one; so, it is essential to have your deposit ready as once the hammer hits and the property is yours, you will need to deposit the funds into the agent’s trust account immediately. The actual amount will vary depending on the auction contract, but as a guide, it is most likely to be 5% and 10% of the total purchase price.
4. REGISTER TO BID ON THE DAY
Alright, so you’ve found your dream home, have your finances prepared, feel well equipped with local market knowledge and you’ve arrived at the auction of your dream home… what’s next? It’s time to register to bid in the auction. If you intend to bid at an auction, you are required to register your bid. Simply speak to your agent, who will send you the relevant forms to fill out and assign you a bidding number (hint: you can pick your own, if you have a lucky number in mind!)
5. GAME TIME
The time has come and the bidding is about to start! Before the bidding commences, the auctioneer will clearly announce the terms of auction and any contract specifics. Next, the bidding begins. It’s as simple as raising your number identifier card and suggesting the amount (hint: you can suggest the increment raised each time, or can agree with the auctioneer’s suggestion). Hot tip: your property is always subject to a reserve price, AKA, the price that the seller is prepared to sell for. If you don’t make this price, never fear, because you can commence private negotiations once the property is passed in at auction.
6. SELLING, SELLING… SOLD!
The stakes were high, energy electric, and… it’s sold (to you!) Congratulations, our highest auction bidder. Once the auction is over, you will be required to sign the contract of sale and pay the deposit immediately after the auction. Take a breath of relief and give yourself a pat on the back, you’ve just made it through your first auction.
Still on the hunt for your dream home? Find it here.