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Auction do's and don'ts: tips for first-time players

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I am going to an auction for my first house and I would love the dos and don’ts before I go?

Make sure you do all of the inspections before you go to the auction and have your finance arranged. Remember you will have to cough up 10 per cent if you win the auction and so have that prepared. Do your research on websites such as Residex to see what are the average prices you should pay for the kind of property you’re buying in that area. Then establish a maximum you will pay and make sure your lender will support that price. If you really want it and the average price is $300,000, work out how far above that price you would be prepared to go. If you think you can make money on renovating the property, get a builder to give you an estimate for doing the work. Once you know what you will pay, take along someone who will stop you from going above your maximum. The heat of the battle of an auction can force you to do silly things. Some people ask another person to bid to make sure that they don’t overbid. Good luck and don’t be silly!

For advice you can trust book a complimentary first appointment with Switzer Financial Services today.

Important information: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. For this reason, any individual should, before acting, consider the appropriateness of the information, having regard to the individual’s objectives, financial situation and needs and, if necessary, seek appropriate professional advice.

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Published on: Tuesday, June 14, 2011

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