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Ten tips for buying property at auction

I am going to an auction to buy my first home in two weeks’ time. Do you have any tips?

  1. Have the house inspected for pests and get a building survey to know what potential costs lie ahead.
  2. Talk to agents in the area to get a good idea of the ballpark price.
  3. Don’t rely on the agent selling the property.
  4. Have your loan arranged and visit the property as many times as possible and take an objective eye.
  5. Bring a responsible friend or family member to the auction.
  6. Give them your maximum amount and if you are nervous or don’t trust yourself, get them to bid.
  7. Work out what you want to pay and then the maximum you would go to.
  8. Don’t bid until the auctioneer says the property is on the market. If they are not saying then publicly ask out loud: “Is the property on the market?”
  9. If agents are pestering you during the auction, tell them to go away. This is your purchase and it is wise to be realistic in working out what a property might go to and then you need to stick to your plan.
  10. And remember you need to pay 10 per cent deposit if you win the auction and always make sure you have had the contract read by an expert before you go to the auction.

Need more advice? Real estate expert John McGrath reveals more tips for buying at an auction here.

And, what’s the difference between sale at auction or private treaty? McGrath looks at the issues here.

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.

Published on: Friday, October 22, 2010

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