Breaking down banking jargon
Auction day; those two terrifying words uttered as you embark (or continue) the hunt for your perfect property. With the right attitude and approach, they needn’t be scary words. We’re here to share hints and tips on how to be prepared and enter auction days with confidence, so that you can win your dream home against the competition.
Research the market
The first thing to do when looking to buy a property at auction, is do your research prior to the day. Based on your needs and savings, you’ll have refined the types of properties you’re looking at. When it comes to specific auctions, look into the surrounding areas and how much properties have sold for locally, too.
Arrange your finance
Before raising that paddle, it helps if you’ve sought pre-approval on a home loan from your bank. This will provide you with the confidence that you can settle, once you win your perfect property.
Inspect the property
Make sure that prior to turning up on auction day, you have inspected the property first. Photographs can be wonderful, but may mask elements that you can only see in real life. If you have concerns, make sure that any structural or history worries are looked at prior.
Set your price
This is the most important factor to make sure you don’t get carried away on the day. Other factors should help you decide your maximum price, and you will just need to stick to it throughout the momentum.
Contrary to popular belief, hiding behind a column and popping the paddle out to bid, doesn’t win you auctions. Part of winning is confidence, so be visible in the centre, and show your confidence to the Auctioneer.
Making the first bid
Properties rarely sell with one bid, so sometimes it can help if you kick it off. It also shows people that you’re serious, and may increase your chances of being involved at the end.
Nothing shows intent to win like consistency throughout the bidding. It can help to bid immediately after an opponent to show them that you’re serious. If they feel like you won’t give up, you increase your chances of winning, but remember your limits.
Bid odd numbers
This tip is slightly more unconventional, but it can help to throw people off course a little. Most people will set round numbers as a budget, and so will perhaps stop at $700,000. If you can bid $703,000 for little extra it may be the difference in winning.
Know your limit
We’ve said it a few times but auctions can be exciting, and it’s easy to get caught up in the momentum, but it is important to know your limits. Make sure not to overbid, and go above your pre-approved amount.
If you’re looking to take the step into auctions, and need pre-approval on a home loan to get going, explore all of the options available to you with us.