The Auction Approach

By Aaron Booth on Jun 02 2017


Auctions are a popular way for vendors to sell their property. They’re a good way to drive up interest, realise price expectations, and to create competition between buyers. But if you’re looking to buy, they can be a an intimidating experience, which is why we’re giving you the quick tips on how to make them work for you.


Be Prepared

It’s a good idea to attend a few auctions before making a bid, to give you an idea of how the process works, and what goes on. If there’s a property you know you want to buy, make sure you have spoken to your preferred lending specialist and have pre-approval from your lender before going to bid.  If you win, you’re legally obligated to pay, so you don’t want to be on the hook for something you can’t afford.  You can also arrange in advance deposit so that you have a cheque ready or can transfer electronically as most account have a daily transfer limit much smaller than the required 10% of the purchase price.

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Register

Once you’re ready, you’ll have to pre-register with the auctioneer on auction day before you’re allowed to bid. You register by giving your name, address and phone number, and show proof of identity with a licence, passport, or 18+ card. Once you’re registered, you’re given a number which you must display when bidding.

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Keep Calm

It’s important to set a limit to that you’re willing to bid. There’s no point in making the winning bid if you can’t afford the price. Remember not to get too emotional about the auction process; if you win, you’re legally obligated to both pay the 10% deposit and to purchase the property. If you can’t pay, you might lose your deposit and a whole lot more.

At the end of the day, auctions can be a great way for both parties to come out on top. Just remember to prepare beforehand, and to keep calm, and you’ll be able to do your best towards buying your dream home.  The team at LJ Hooker Forest Lake are always there to help so don’t forget to ask.

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