Auctions are becoming an increasingly popular selling method in WA. With that said, an auction takes preparation; you need to ensure you have your ducks lined up before you bid.
In WA, we have seen property stock tighten and demand increase, seeing many Agents turn to auctions to show transparency in the selling method and open up competition on the floor.
So, if you have found your dream home and it is going to auction, here are our top tips to get you to be the one holding the keys at the end of the bidding.
An auction is an unconditional cash offer to purchase. If you hold the winning bid, you will be required to sign the contract and pay a deposit immediately.
The beauty of pre-approvals is that you can bid with confidence; you have a set amount that you can borrow pre-approved, making you a solid candidate to bid confidently and securely.
Inform your broker that you are looking to bid at an auction, the date of the auction, and they will do the rest.
Do your research, look at recent sales reports and find out what similar properties in the area have sold for. Your Peard Finance Broker can help you by providing you with a CMA (comparative market analysis) report, which will detail recent sales in the area of comparable homes to help you identify the expected value of the property. Also, ask the selling agent for the sales contract and auction particulars prior, so there are no hidden surprises after you have signed the contract.
Arrive early at the auction on the day, introduce yourself to the Agent and Auctioneer. Ensure they know you are there to bid and buy.
This allows you time to get comfortable. When it comes to bidding, start early to get comfortable with the process, and know your limit.
The idea behind an auction is to drive competition and show transparency of the sale. Don’t get too caught up in fear of missing out by bidding beyond your means. Remember, even with an auction, there are additional costs of purchasing, including;
- Conveyancing and legal fees
- Stamp duty
- Mortgage Insurance
- Council and utility rates
For more information on preparing to purchase a home in the current market or going to auction, reach out to our friendly Peard Brokers for an obligation free catch up on how we can help you.