Buying at Auction? Read This Before You Put Your Hand Up

If you’re selling a home, an auction campaign can be a method that brings an even better result for the sale of your home. However if you speak to those on the market to purchase a new home, you will hear a whole different story. While some love the auction for its transparency, others despise the intense competition and heated emotional responses it can generate.No matter what your opinion on the auction campaign, here are five useful tips to read before you put your hand up.1. Inspect the property more than once before auction dayWhile you will get a chance to inspect the home on the auction day, keep in mind that it will be crowded with many other people looking at the same time. Make sure that you have had a first, and if you decide a second, inspection before the day. This way you will feel more comfortable with the home and its features.2. Read the ContractsAll homes for Auction in Victoria will have a Section 32 Vendors Statement on display on the auction day. It is advisable to read this beforehand though. Request a copy from your agent and have a read through it. It contains important information about zoning, rates, easements, covenants, and caveats. If you are unsure about this, ask for help from your agent or legal representative.3. Have Your Finance Ready To GoWhen you buy a home at Auction you do so unconditionally. This means that the sale cannot be subject to finance or other conditions. Speak to your bank or lender before the auction day to make sure that your finances are in order. Keep in mind that if you buy a home at auction there is no cooling off period available.4. Consider a Building and Pest InspectionIf you are purchasing an older home, or are concerned about pests, consider having an inspection done before the auction. Although this may be a costly exercise, finding out any problems before you place a bid will be well worth your investment.5. Set Your LimitBefore you place a bid at an auction, decide on your maximum price. The competitive atmosphere can prompt you to pay more than you had earlier intended. You may consider having a friend bid on your behalf if you don’t feel comfortable doing so yourself. Having done your area research before hand and visiting other homes on the market can help you to make an educated decision as to the property’s value.