Thinking about buying property at auction but need some good advice? Our panel of experts have got some key tips to help you get the auction result you're hoping for.
For specific advice about buying property at auction we recommend you contact a real estate agent or lawyer directly.
Until then, here's some smart advice from six Queensland real estate agents with their top tips on buying property at auction.
Glenn Bool, McGrath Estate Agents, Bulimba, Brisbane
I could talk about the benefit of auctions for hours! But here are a few key tips for buying at auction.
- Be prepared; make contact with your conveyancing company or solicitor, building inspection company and bank or broker.
- Do your homework on the area, check out recent sale prices for similar homes wherever possible.
- Set your limit and stick to it, but bid with confidence. A confident bidder is always well placed.
- Do not be afraid to open the bidding when the auctioneer calls for starting bids, it shows confidence.
- Finally – embrace the auction process, it is conducted out in the open and is a completely transparent way of buying. You will see what others are prepared to pay and you can choose to compete or not. The feedback that I am getting from the buyers in general is that they are sick and tired of missing out on their next home by a few thousand dollars when sold as private treaty. The problem is that a buyer does not know how much to offer, they are often getting beaten by $5,ooo and they rarely get a chance to increase their initial offer.
Sean Wallis, Explore Property, Ashgrove, Brisbane
Ensure you have completed your due diligence prior to auction day. This includes an independent valuation of the property and building and pest inspections.
If you are not comfortable bidding yourself, have someone do this on your behalf.
Be clear on the maximum you can spend for the property and stick to it as it is easy to get caught up in the emotion and excitement of an auction.
Ben Cannon, Ray White, Stones Corner, Brisbane
Buying at auction can be seen by some as a daunting process. It should however be seen as an opportunity to see the whole market and clearly see your competition. The benefit of this to the buyer is the are no 'smoke and mirrors'. It is a transparent process that gives both buyer and seller a true indication of the market on that day.
My main tips for buying at auction are:
- Know your numbers. Know what you can, should and would spend to buy the property.
- Have a good plan of what to expect on auction day. I say have three prices ready before the auction. 1. "If Push Came To Shove" - A price that you may not be happy with but could make the purchase work for you. 2. Market Value - A figure that based on the market research you have done would be seen as Market Value. 3 "Wahoo Price" - If you got this or under you would be saying "Wahoo!!!"
- Know all the terms the vendor has said they require to sell at auction.
- Make an offer on the property before auction day if you really want it or someone else might beat you to it.
- Don't get emotional. Sometimes it can pay to have a trusted agent or someone bid for you with you be on the phone. This takes the emotion out of the transaction.
- Have all your searches done well before the auction day.
- Have your photo I.D available to register on the day.
- Get into the bidding like you mean it. Start the bidding with a strong and confident bid that everyone hears. Show people you are there to buy and mean it.
Amber Werchon, Amber Werchon Property, Mooloolaba, Sunshine Coast, Queensland
- Be prepared – ensure finance is secured, and that the Building and Pest Report is satisfactory.
- Don’t fall into temptation to bid over budget, as the sale will be unconditional. Have a plan and stick to it.
- Buyers need to remember that if the property doesn’t sell under the hammer, then they can continue to negotiate to secure it post-auction. However, buyers should ensure they put their best price forward, or they risk losing out to another buyer; buyers that ‘play games’ often miss out.
- Get your finance approved and order a valuation (engage a broker to do all the hard work for you).
- Do a building and pest inspection.
- Engage a conveyancer or solicitor.
- Ask the agent for a copy of the terms of auction,a contract and any other information they have available.
- Do research into recent sales and what's happening in the area regarding new development that may impact the property.
- Meet with the agent and discuss auction day, how to bid, when to register, what you need to bring, how early you can arrive - grab a coffee, get there early and engage - you have to register to bid and you have to bid to buy. It's transparent and a great way to purchase property.
Daniel Argent, Urban Property, Paddington, Brisbane
My advice would be to know your budget and know if you have room to move even if you are at the top end of your budget.
Come auction day, bid with aggression and confidence. Do not show emotion or lock eyes with competitive bidders.
When the bids are getting smaller and slower wait until it gets close then put in a strong bid to scare away your competition, as long as it is within your budget.