Are you in the market for an investment property? Chances are you’ll need to be ‘auction savvy’ to have a hand in securing the property you want. Here are our top tips on how to survive your first auction and learn from this experience for future opportunities:
Before you find a property that you are interested in purchasing, attend a few local auctions. Seeing how the auctioneers run the day and how people respond is an experience that can’t be taught. Research, research, research! Just as you would for a private sale, you need to do building inspections and pest reports for a property being sold at auction. However in this case, these checks need to be done before the auction date. If you are the highest bidder on the day, there will be no opportunity to do those checks afterwards – the place will be yours when the hammer goes down. Set a budget and stick to it. It’s important that you keep your head clear on auction day and not let emotions get in the way. Be prepared to walk away if the price is becoming out of your reach. Consider the terms of settlement in the contract. Have your conveyancer or solicitor give you a free pre-auction contract examination. This gives you the opportunity to negotiate a more suitable settlement time with the vendor if required. Although they are not obliged to agree, it helps to have the opportunity to approach the subject with the vendor rather than risk a situation that puts you at financial distress. Making sure you are well prepared and informed before your first auction can ensure you are in control and don’t get in over your head. Then you are well-placed to make your investment work best for you.