With Canberra recording the second highest clearance rate among the capital cities behind Adelaide, last weekend at auction, it is safe to say that there may be a rise in the amount of properties using an Auction campaign to go to market.
With this in mind we understand that buying a house at auction can be a roller-coaster ride of emotions. To help minimize the anxiety and stress, follow these simple rules:
1) Try before you buy and understand how an auction works. Attend as many auctions as you can whilst you are in the market for a new home so if the property you do love is going for Auction you will have the confidence and experience on how they work.
2) Organise Your Finance. This is really important as once hammer falls and you sign the contracts than you have officially bought the property and the price you pay for turning back at this point is astronomical. This will also help you determine you maximum price.
3) Get Legal Advice. Some homebuyers try to save hundreds of dollars and in doing so they risk thousands. Don’t let this happen to you. If you are keen to buy at Auction, consult your lawyer before you sign anything. A home costs hundreds of thousands and a lawyer costs mere hundreds.
4) Bring a Valid form of ID. This is a requirement when registering to bid in the ACT and a registration cannot be granted without it.
5) Keep Your Cool. In today’s strong auction climate use the psychological advantage of projecting confidence. Make the other bidders think you have deep pockets and no limit.
6) Bid boldly and eyeball the auctioneer. Open the bidding high, close to where the reserve will be (the property won’t sell below this) and make your bids fast and assertive. Procrastinating or agonising over your next bid is a sign of weakness.
7) And most importantly… Know when to stop!!! Absolutely do not exceed your maximum price, it may not end well.