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Going to an auction: Here’s how to prepare

Oktay Sengoz

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15/07/2024

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1.5 min read

Attending an auction can be both exciting and nerve-wracking. The pressure of the event, emotions running high, and the agent whispering, “Come on, another $1000 won’t hurt,” can all add to the intensity. Auctions are a strategic way for agents to generate demand and interest in a property, often resulting in buyers paying more than they initially planned just to ensure the hammer drops in their favour.

To help you navigate the auction process smoothly, here’s what you need to do to prepare:

Set a limit and stick to It

Decide on your maximum bid before the auction and commit to it. It’s crucial to prepare yourself to walk away if the bidding exceeds your limit. Many buyers fall into the trap of continuing to bid beyond their budget, which can be risky if you can't secure additional financing from the bank.

Have a bidding strategy

Attending an auction without a plan can lead to impulsive decisions driven by emotions. Develop a clear bidding strategy to maintain logic and control throughout the process, helping you avoid overpaying for the property.

Prepare in advance

Ensure all necessary checks, legal reviews, and pest and building inspections are completed before the auction. Your legal representative should negotiate any contract changes before the hammer drops. Once the auction concludes, you’re bound to the terms of the contract, which may not always be in your favour.

Additional tips for auction success

Know your finances

Get your finances pre-approved and understand your lending limits. This preparation gives you confidence and clarity during the auction.

Stay calm

Emotions can run high during an auction. Stay calm and stick to your plan to make rational decisions.

Attend practice auctions

Emotions can run high during an auction. Stay calm and stick to your plan to make rational decisions.

Get auction ready with us

Purchasing a property through an auction can be a great opportunity, but it’s essential to approach it with a solid plan and preparation. Spending significant amounts of money requires careful consideration and readiness. Speak to us today to ensure you're fully prepared for your next auction. We’ll help you navigate the process with confidence and ease.

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