5 Tips for Buying Property at Auction
Hi, my names Jon Archer from First Things First, and I’m going to take you through my top Tip number 1, and probably my most important tip is to get yourself to lots auctions. You never want the first auction you attend to be for a property you really want. So getting yourself out there on weekends and starting to understand the real estate agent strategies, and all the lingo and terminology that comes with auctions, will really set you up and make sure that you’re raring to go when the time comes. Tip 2, know approximately what the property is worth. Getting a property evaluation from the bank, utilising tools like RP data for an appraisal or looking at recent comparable sales in the area are great a way to determine the property’s value. You can also speak to us if you’d like a sounding board on a particular property that you’re interested in. Tip 3, set yourself a maximum bid amount, but avoid finishing on a round number. Why do we always recommend this? Well often buyers will have pre-approval to a certain loan amount that often ends in a 0 or a 5. For example, your competition might show up on auction day with the intention of only spending up to $600,000 and not a cent more. So, extending yourself to $602,000 could be all that you need for that winning bid. and ensures that you won’t leave wondering ‘what if?’ Tip 4, be patient and bid with confidence. What I mean by this is you don’t need to be the first horse out of the starting gate, but when you do start bidding it’s a good idea to always make sure the pressure is with the competition. This involves bidding confidently and quickly so the estate agent and everyone in attendance isn’t looking in your direction. Tip 5, always be prepared to walk away It’s very easy to get carried away and feel pressured by a real estate agent to go that little bit higher. But in reality, if you are starting to hesitate and stopping to speak to your partner then you’ve probably already lost out because your competition’s going to smell blood and know that you’re very close to your maximum. There will always be another property so don’t panic, just bid to the amount that you’ve agreed on and bid with absolute confidence. So, there you have it, those were my top 5 tips for buying property at auction. Have any others you would like to add? Leave them in the comments below. For all your first home buying tips and advice visit www.firsthingsfirst.net.au or call and speak to one of our property experts today. See you on the next video.