How to Approach Auctions as a First Home Buyer

Auctions are an extremely popular method for property transactions across Australia. With a degree of competition involved, it can seem overwhelming for first home buyers approaching the market.

If you’re new to auctions, there’s no need to feel intimidated - all you need is some solid preparation.

Try attending some auctions in your local area to get a feeling for the atmosphere and general behaviour of the bidders during the proceeding. Watch both the auctioneer and the bidders to gain a greater understanding of the process.

Once you’ve decided on your budget, you need to stick with it. As excited as you may be about a property, always be prepared to walk away if someone outbids you. Breaking your financial spending limit can cause complications further down the road.

Before heading in, sort out your financials by arranging a home loan pre approval and figuring out your borrowing capacity. Being well aware of just how much you have to spend can go a long way in helping to narrow your real estate search and prepare you for entering the auctioning arena.

To get more detailed information on your situation, talk to a Loan Market mortgage broker today.