Some buyers fear auctions so much that they never look at a property unless it has an asking price.
Unfortunately, though, avoiding auctions in some areas means you are limited to the dregs as all the quality property is marketed that way.
The only way to reduce your chances of either missing out or paying too much at auction is to educate yourself about the market and keep up to date with recent sale prices.
Following are six tips to help you calm your nerves in a hot auction market:
- Remember that auctions might be scary but there are some benefits to buyers: transparency being the biggest.
- Don’t assume that all agents under quote by the same ratio or amount.
- Do your own research on recent comparable sales and make your own mind up about a reasonable market price for the property.
- Don’t make a pre-auction offer simply because you fear competition. Remember that you need to make a really strong offer which needs to be well in excess of other buyer interest at the time.
- Don’t make a pre-auction offer unless you are ready to sign a contract under auction conditions.
- Set your limit before you go to auction, not during the auction. Ask yourself at what point you would kick yourself if someone else bought it.
Published: September 2014
DISCLAIMER: Good Deeds buyers tips are intended to be of a general nature. Please contact us for advice that is specific to your individual circumstances. You may also need to get advice from other professionals such as an accountant, mortgage broker, financial planner or solicitor.