Auction Day Checklists that will Help you Win Your Dream Property
From locking in finance to pre-registration, these preparation checklists will ensure you have everything in order come auction day, and get you one step closer to achieving your property dreams!
Bidding at a property auction can be a stressful experience, regardless of whether you are a seasoned investor or a first-time homebuyer. There’s more to bidding than just inspecting the property and raising your hand at the auction. Winning takes strategy, research and planning.
With a lot of money at play, fierce competition, and all eyes turned your way, it’s not surprising that you may want to shy away from the process altogether.
Before you rule out auctions, and in turn wave goodbye to your dream home or investment, check out the checklists below, composed by Maker Advisory to help guide you towards bidding success.
Pre-Auction Day Checklist:
- What is the true market value of the property?
This gives you an accurate guide as to what you should bid to secure the property.
- What is the sales history of the property and its neighbours?
Research the sales and advertising history of the property and neighbouring properties to understand local demand. Be wary if a property has repeatedly been on the market for a long time.
- What is happening with the campaign and how is it tracking?
Speak with the agent and other local agents to find out what is really happening with the campaign. Some questions to consider:
Any interested parties?
Have contracts been issued?
How many registered bidders are there?
- Arrange for due diligence checks to take place
Lock in your strata, building and pest inspections, so you can understand the property as a whole.
- Is your conveyancer happy with the contract?
If not, make sure you get all changes in writing for auction day.
- Get your finance locked in
If you are borrowing money, make sure you are approved to bid on the day.
- Have you pre-registered?
In some states, you are required to pre-register for the auction so you can bid.
Auction Day Checklist:
- What is your auction game plan?
It is super important to establish a game plan. This includes what to expect during the auction, your strategy and your auction limit.
- Show your ID to the selling agent to get a paddle and introduce yourself to the auctioneer before things get started
Getting in the auctioneer’s good books might improve your prospects.
- Stand in an area with a good view of other bidders.
That way you won’t miss a thing and will be in amongst the action.
- Raise your paddle in the auctioneer’s line of sight for each bid.
You don’t want to miss out on a bid due to terrible paddle operation.
- Be aware of your competition’s body language and behaviour
Look for cues, e.g. they may have reached their ceiling if they huddle with their support team. If they subsequently place a bid with a small increase, immediately go a little bit higher.
- Bid in odd increments
This will encourage smaller bid increases as well as slow bidding momentum – not all auctioneers are fast at maths.
- If you are the highest bidder, but the property does not reach the reserve price, you will be given the first option to negotiate with the seller.
Know your strategy, and remember just because you made the highest bid, doesn’t mean you are the only contender – don’t be unnecessarily tough during the negotiation.
- Double-check that the contracts are correct
Things can be overlooked in the buzz of auction day. Take your time reviewing the contracts and keep your strategy top of mind.
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