It’s a competitive market and it’s incredibly disappointing to miss out a property that you’ve fallen for. We’re seeing auctions passed in each weekend and a steady increase of sales prior to auction – a sign of the competiveness out there to secure a property. We’ve shared some tips on what you should consider leading up to the auction and how important it is not to get disheartened. Be patient, stay in the market and know that the next opportunity will be just around the corner.
Know your budget
Stick to your guns as you know what you can afford and what is realistic within your means. Have a price that you’re prepared to go, but also allow yourself a little extra. You don’t want to be completely rigid so you miss out a property altogether, especially if the difference between buying or not is only a small amount. On the other hand, you don’t want to extend yourself financially or take on debt that you can’t manage. In some instances, walking away is the best action.
Do your homework
What we see each weekend is buyers that have too much trust in agents and are guided by the sales ranges they dictate. There is the old adage “quote it low and watch it go, quote it high and watch it die” and we know that ranges are often underquoted by agents in order to get buyers to the auction. To avoid getting your hopes up, seek independent advice to know what the real value range is of the property you’ve got your eye on. Make sure you also attend auctions in your neighbourhood to understand the market value of the area. And importantly, do all of this well ahead of the auction. Planning and preparation is key.
Should I make an offer prior to auction?
Don’t be afraid to put in an offer leading up to an auction. And make sure you’re putting an offer on the table that won’t insult the vendor. This is where you need to have done your homework, so know your price and make an offer to the agent that they will be confident to take to the vendor.
Another ship to sale
If you do miss out at auction, don’t lose hope as there are other opportunities ahead. Stay in the market, be patient and do your homework so you know what makes a good property and what prices are reasonable and within your budget. If you do all of this, you’ll soon be on your way to securing a property.
PropertyDuo is a solutions driven property advisory service that is underpinned by WBP Group’s 25 year history, experience, data and risk analytics.
Getting independent advice is the best way to have a game plan and the information at hand leading into an auction. Speak to one of our trusted PropertyDuo associates for the advice you need to make an informed buying decision.