Buying at Auction? Read This Before You Put Your Hand Up

If you’re selling a home, an auction campaign can be a method that brings an already better consequence for the sale of your home. However if you speak to those on the market to buy a new home, you will hear a whole different story. While some love the auction for its transparency, others despise the intense competition and heated emotional responses it can generate.

No matter what your opinion on the auction campaign, here are five useful tips to read before you put your hand up.

1. Inspect the character more than once before auction day

While you will get a chance to inspect the home on the auction day, keep in mind that it will be crowded with many other people looking at the same time. Make sure that you have had a first, and if you decide a second, inspection before the day. This way you will feel more comfortable with the home and its features.

2. Read the Contracts

All homes for Auction in Victoria will have a Section 32 Vendors Statement on characterize on the auction day. It is advisable to read this beforehand though. Request a copy from your agent and have a read by it. It contains important information about zoning, rates, easements, covenants, and caveats. If you are unsure about this, ask for help from your agent or legal representative.

3. Have Your Finance Ready To Go

When you buy a home at Auction you do so unconditionally. This method that the sale cannot be unprotected to finance or other conditions. Speak to your bank or lender before the auction day to make sure that your finances are in order. Keep in mind that if you buy a home at auction there is no cooling off period obtainable.

4. Consider a Building and Pest Inspection

If you are purchasing an older home, or are concerned about pests, consider having an inspection done before the auction. Although this may be a costly exercise, finding out any problems before you place a bid will be well worth your investment.

5. Set Your Limit

Before you place a bid at an auction, decide on your maximum price. The competitive air can prompt you to pay more than you had earlier intended. You may consider having a friend bid on your behalf if you don’t feel comfortable doing so yourself. Having done your area research before hand and visiting other homes on the market can help you to make an educated decision as to the character’s value.

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