What you need to know to prepare for auction
Gearing up to attend an auction for a property of interest can be both exciting and nerve-racking, so being well prepared is the first step. To avoid disappointment and potentially extra costs down the track, it’s wise to have a pre-purchase inspection done to the property, which will detect building defects or other issues like termites/pests.
Let’s have a look at what you can do to maximise the chances of a smooth auction process.
Have your home loan pre-approval
This is likely, the most important part to help with the purchase of new real estate. Having home loan pre-approval puts you (the bidder) in a negotiating position. It also means you now have the green light from the lender and are aware of your maximum borrowing capacity, giving you the confidence to start bidding.
Have a deposit
Often, a 10% deposit will be required on the day as part of the terms of the auction, in other instances, deposit bonds or cash may be what’s needed. Ensuring that some form of deposit is ready on the day, will increase the chances of landing the property as well as make the process more efficient for everyone.
Know your limits
Take the time to understand how the auction process will work, in the heat of the [bidding] moment, it can be easy to get carried away. Knowing what your ceiling figure is, and keeping your cool will help you stay in control and within your financial limits. Now it’s time to enjoy the ‘under-the-hammer’ experience.