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Auction Tips for First-Time Buyers: How to Approach Property Auctions with Confidence
about 1 month ago
Auction Tips for First-Time Buyers: How to Approach Property Auctions with Confidence

Property auctions can be intimidating, but with the right preparation, you can go in with confidence. Here are some essential tips for buyers looking to succeed at auction.

Tips for a Successful Auction Experience

  • Inspect the Property Thoroughly
    Attend open homes leading up to the auction, and get a feel for interest levels. Attend a few practice auctions of properties you’re less invested in to build confidence.

  • Review Contracts Early
    Request a copy of the contract in advance and have your conveyancer or lawyer review it to clarify any questions. Familiarise yourself with auction rules in your state to know what to expect.

  • Do Your Due Diligence
    As auctions are “buyer beware,” arrange for building and pest inspections to uncover any potential issues and adjust your bidding strategy accordingly.

  • Set a Realistic Budget
    Research similar properties in the area to gauge a price range, but be prepared for potential competition. Set a maximum budget, and bring along an impartial friend or family member to help you stay disciplined.

  • Have a Bidding Strategy
    Know your bidding approach, whether it’s starting with small increments or bidding by phone. Discuss limits with your partner in advance to avoid on-the-day pressure.

  • Be Ready to Negotiate Post-Auction
    If the property passes in, being the highest bidder can give you the first opportunity to negotiate with the seller. In a quiet market, this can be an ideal time to make an offer.

By following these tips, you can approach auctions with confidence, ready to make informed and strategic bids.

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