If you are planning on bidding at an auction then it is important to come prepared.
Here are some tips that can help you achieve the greatest chance of success at a public auction:
1. Do your research
By looking at the selling price of similar properties you may be able to gauge what a house or unit is worth. Consider factors like: housing demand, what other properties have sold for in that area, how long they were on the market and the proximity to facilities such as public transport, hospitals, the CDB and schools.
2. Understand the process
It is recommended that you attend a few auctions before you intend on bidding so that you can familiarise yourself with how an auction works. Going to auctions can also help you understand things like vendor bidding and the style that an auctioneer has.
3. Make sure that your finances are in check
A 10% deposit is usually required on the day of an auction. Because of this, you will need to have your finances approved before the day of an auction. It is also crucial that you know what your limits are, and when to stop bidding.
4. Know what to bring
If you wish to bid for a property, you will need to register. A registration desk is typically set up at the entrance of an auction, where real estate agents can answer any last-minute questions you may have and assign you a bidder number. You will be required to provide identification such as a driver’s licence or passport to register for an auction.
In addition to providing identification, you will need to have a personal cheque, bank cheque or deposit bond with you so that you are able to pay the deposit if you are successful. If you are planning to bid on behalf of someone else you will also need to have paperwork showing that you have been authorised to do so.
5. Familiarise yourself with auction terms and conditions
An auction is an unconditional sale. Ensure that you read and fully understand the auction terms and conditions prior to bidding, and ask a real estate agent if you have any questions. These conditions will always be displayed at an auction and can also be found on the NSW Fair Trading Website.
6. Be a confident bidder
It is a good idea to arrive early to see how the auction room is set up and secure a seat where you can be easily seen by the auctioneer. Placing “confident bids” is also recommend as it will help give other people the impression that you are very serious about the property and have a lot of money that you are willing to spend. Being a confident bidder also means that you speak clearly and loudly (without screaming), have open body langue and try to bid in larger increments.
For more information about upcoming auctions in the Illawarra visit the MMJ website or talk to one of our expert real estate agents for professional, honest advice.