Auctions are a unique event focusing market attention on one property, providing a competitive buying environment and a clear deadline. They also create urgency for buyers who wish to purchase the property and, understandably, potential buyers often feel excitement as well as intense anxiety about auctions.
However you can limit your auction day stress by putting in place a rigorous plan that includes doing your homework, setting yourself a strict financial limit and understanding that if it doesn’t work, there is always next time.
1.Research - In today’s digital world, much of the initial work involved in buying a property can be done online. Research the area where you want to buy and the type of home you want and you will get a fairly accurate estimate of going prices. Enlist the agent’s help as well, their local market knowledge is invaluable.
2.Declare your interest - Let the real estate agent know you are interested in a property by registering early. Avoid leaving it until the day of the sale as you might just miss out. Some properties are sold prior to auction and if you haven’t declared your interest, then no one will know you are a serious contender.
3.Use a proxy - If the whole notion of an auction is too daunting and you would rather get a friend, a buyers’ agent or a solicitor to do the bidding for you then remember you must give the auctioneer a written authority before the auction starts. This must include your name, address and proof of your identity such as a driver’s licence or passport.
For all their potential for anguish, the best thing about auctions is their finality. There is no cooling off period and no nail-biting wait. If you are the successful bidder, it is all signed, sealed and delivered on the day. This is why auctions make up a significant number of all property sales across Melbourne.