How to Buy A First Home At Auction

The situation: you’re a first home buyer still looking for that perfect place, you find what seems to be your dream house, but there’s just one snag - it’s selling at auction.

You may well be daunted. Buying at auction can be stressful, confusing, thrilling, exhilarating - or all of the above. Especially if you haven’t done it before.

What’s important to understand is that it needn’t prevent you from buying the home you want.

Start by removing the fear of the unknown. Attend a few auctions to see how things work, watch the auctioneer and the bidders, and get an idea of the general energy of the process.

Then, simply do your homework - have a building and pest inspection done on the property, get your solicitor to look over the contract of sale, and make sure you get home loan pre approval.

You’ll need to have your finances in place because an auction is an unconditional sale - the bonus being that this also gives you a budget to work with.

Work out the maximum amount you are willing to pay for the house and stick to your plan - it may be your dream home you are bidding on, but remember: don’t get emotional!

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