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C&G’s Guide to Bidding at Auction
Found your perfect home and learned that you’ll need to compete for it at auction? Never fear. Auctions can be exciting – as you play an active role in a transparent, public purchasing process - but they can also be a stressful and intimidating environment if you are not a naturally assertive person. No stress necessary, as Chisholm and Gamon are here to help! Whether you are seasoned investor or a first home buyer, this C&G blog is full of tips to help you navigate an auction and snap up your dream home!
Preparation is key. Do your due diligence in the time leading up to the event – attend as many auctions as you can to see the process in action and observe how different properties sell. It could also be useful to observe other bidders and how they conduct themselves during auctions. You’ll be more prepared for your own auction day with this knowledge under your belt.
We recommend letting the estate agent know you are truly interested. Ask them for insight into recent comparable sales – this can help you determine the likely sales price for the home you’ve set your heart on. It is also important to ask about the vendor’s terms in advance. These could include details such as the necessary deposit and preferred settlement date. Arriving at auction with a home loan pre-approval may also increase your confidence, as you’ll have a firm grasp on your bidding limit. If you win at auction, you will need to pay your deposit when signing the sales contract.
When auction day finally arrives, be prepared with a game plan. Be assertive and confident. If you keep hesitating during the bidding to discuss matters with a partner or family member, it can indicate a lack of resolve.
Lastly, it is important to remain realistic and optimistic. Don’t ‘lowball’ and begin bidding at an irrationally low figure – doing so will not change the vendor’s reserve. Bid with the intention of reaching the reserve and securing the home. And in the case that you don’t win at auction … there’s always another Saturday of auctions, and another home to set your heart on around the corner.
Auctions can be very competitive and intimidating. Reach out to us today and team C&G will certainly help you learn to bid with confidence.