Buying at an auction is different to traditional private property purchases and there are a number of things you should consider:
1. Research
It pays to do a large amount of research about the auctioning process and property values before seriously bidding at an auction. Attend other auctions and investigate the auctioning outcomes in each case.
2. Auction bidding is unconditional
Usually, bidding at auctions is on an unconditional basis. You are not able to place special conditions (e.g. subject to finance) and are not generally given a cooling-off period. You will normally required to make your deposit payment at the auction (approx 5-10% of purchase price)
3. Check terms, conditions and contract prior to auction
Be sure to read the terms and conditions of the auction so that you understand all of your obligations before bidding. It is essential to get a solicitor or advisor to review the contract and conduct searches prior to the auction day.
4. Set your limit and stick to it
Auctions can often be highly-charged, emotional events where bidders push the purchase prices beyond expectations. Be certain to set yourself your upper limit and be unemotional in your approach. It is often helpful to take a third-party gatekeeper (advisor, agent, financer or friend) to ensure you do not exceed your limit.
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