Going to auction? Here’s what you need to know.
So the house you love is going to auction. Are you sweating with nervous energy? Exercising your paddle arm or deciding on your auction personality (the life of the party? the quiet and stealthy bidder with an air of mystery about them?).
After these important decisions are made, it's time to draft a game plan and get across what you need to know before commencing your paddle arm bicep routine.
What you need to know about going to an auction
Auctions are a hotbed of energy and a whole lot of money. You need to go in prepared. Get a feel for the landscape of an auction and attend a few you have no intention of bidding in before throwing yourself into the frying pan. This gives you the opportunity to take it all in from an observer's perspective with none of the emotion involved.
There is zero cooling-off period after an auction, if you’re the winning bidder, that house is yours from the moment the auctioneer's gavel hits the stand. If you change your mind, the home doesn’t pass a building and pest inspection or you can’t afford it… you’ll still be legally required to settle the contract. So go in sure and don’t let your emotions get the best of you.
Preparing to go to auction as a bidder
There’s a short but important checklist you should tick off before auction day.
Inspect the property
Organise your finance
Obtain a copy of the contract from the vendor
Seek independent legal advice about the contract
Organise a building and pest inspection or request a copy of this if the vendor has provided one
Ask the agent what percentage of the sale price needs to be paid as a deposit on the day
Find out what accepted forms of payment there are for the deposit
Most of these should be easy to organise and obtain and will provide surety to you before placing any bids.
It’s auction day
The day has arrived, it’s time to flex that bidding arm and hopefully secure the home you want (for the price you want).
On auction day, it’s easy to get caught up in the moment while your eyes are on the prize. It’s important to stay grounded and stick to your budget and game plan.
If you want to bid, you’ll need to register as a bidder prior to the auction kicking off. Be sure to confirm with the auctioneer whether there have been any last-minute changes to the contract and the terms of payment when signing the contract if you're the successful bidder.
But most of all? Go in prepared to not get the home. Auctions can throw curveballs and surprises and there’s every chance that this home won’t be the one for you.
Having your finance airtight before the day is paramount. The team at Lenny are ready to help you secure a loan approval so you can bid with confidence.