Spring has arrived, which means just one thing if you’re thinking about buying property – the selling season is beginning in earnest.
With so many properties in Sydney sold at auction, we thought we’d give you some tips for auction day, so here goes…
- Set a “walk away price”. Look at what you’ve got and what the lender will give you, but do you have any room to stretch if the bidding goes just beyond your limit? Can you do some extra overtime, sell some shares or ask your parent for a small loan? Just like setting sales targets at work, it’s good to have a target and a “stretch target”, and to be comfortable with both of them. Don’t stretch yourself too thin with your stretch target, and definitely don’t bid beyond it. Get comfortable with your numbers and stick to them!
- It’s good to make a low bid to start the auction and then sit back and watch the other bidders. See who seems really keen, watch the pace of the bidding and the size of the bids.
- Your competition will be checking you out too – so project confidence and certainty that this home will be yours. Make your bids fast and assertive, always calling out your offer in full rather than the increment, such as “$375,000” instead of “$5,000”.
- If it’s going to pass in, make sure yours is the last bid. This usually gives you the first right to negotiate.
- If you’re not confident of bidding – don’t! Hire a buyers agent to do the work for you. It’s far less stressful and they take the emotion out of it.
Good luck and have fun! Buying at auction isn’t something you do everyday, so enjoy it!
And most importantly, make sure we’ve arranged pre-approval for you BEFORE the auction so you can sign with confidence and know exactly what the lender is offering. Call me if I can help, or download our e-book with lots of tips for buying a new home.
