Auction Tips for First Home Buyers

For first home buyers, it’s probably easy to think up nightmare auction scenarios - what if I make the wrong gesture and accidentally double my bid?

If auctions are new to you however, there is no need to be intimidated - all you need is some solid preparation.

Don’t go in cold

Attend some other auctions before going to the one you plan to bid at. This will give you a chance to see how things work and how the auctioneer and other bidders act.

Be disciplined

As excited as you are about a property, you need to decide on a budget and stick to it. Always be prepared to walk away if someone is willing to pay more than your maximum.

Don’t assume the worst

Just because there is an auction doesn’t mean the seller is necessarily confident of a huge turnout of interested bidders.

They may simply be looking for a quick and unconditional sale. In this case, they may be open to offers before the auction - or after if they don’t manage to sell.

Get your finance sorted

Before you can bid at an auction, you need to arrange home loan pre approval.

That’s because bids are unconditional and when successful you need to have your finances ready.

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