Do your homework 
At an auction no price is set, so it’s up to you to form your own view on what the property’s worth.  That could include having a valuation done, getting a title search, checking the Rateable Value (RV) from the local council, finding out what similar properties in the area have sold for, getting a valuation report and organising a building inspection.  Remember, once the hammer falls it’s too late – you’re committed to buying the property, so you need to check all these things out beforehand.  For example, your home loan finance may be conditional on a satisfactory valuation from a registered valuer, if so you will need to have the valuation report done (and discuss the valuation with the bank) before bidding.

Confirm your finance
Talk to us to make sure that you will be able to finance any bid you make and meet any conditions that may be required by the bank.

Check the auction contract
Ask the agent for a copy of the auction contract, and have your lawyer look at it.  It should state, amongst other things, what chattels are included – so you know exactly what you are bidding for on the day.

Don’t get carried away
In the heat of bidding and competition for a property, it’s easy to let emotion get the better of you – in fact that’s what the auctioneer is depending on.  Once you’ve determined your top price, stick to it no matter what.  If you think you may have trouble staying calm, ask a friend to bid for you and to stick to your price limit.  They won’t have the same emotional connection with the property that you have.

Bid early or bid late?
One strategy that some people adopt is to come into the bidding later on, when some of the other bidders have dropped out.  This can have the element of surprise – just when the remaining bidder or bidders think they have the field to themselves, another serious bidder joins in, making them uncertain.  On the other hand, don’t leave it too late – auctions can be over very quickly – many take only five minutes – and it could be finished before you know it.

Next page | Paying a deposit at auction >>

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