Buying At Auction: Our Top Tips!

Purchasing a property at auction can be an exciting but challenging experience. Here are our top tips to ensure you are prepared:

1. Pre-Auction Preparation:

Before attending an auction, ensure you have your finances in order. Auctions require an immediate deposit, typically 10% of the purchase price, on the day. It’s crucial to have pre-approval for your home loan and access to the deposit funds. Also, conduct thorough research on the property, including building inspections and strata checks if applicable, as there is no cooling-off period once the hammer falls.

2. Understanding the Auction Process:

The auctioneer will set the rules at the beginning of the auction. It’s important to listen carefully and understand the bidding increments and the reserve price, which is the minimum price the seller is willing to accept. If the bidding doesn’t reach the reserve, the property may be passed in, and the highest bidder usually gets the first opportunity to negotiate directly with the vendor.

3. Bid Confidently, But Wisely:

Decide on your maximum bid before the auction begins and stick to it. Bidding can be fast-paced and competitive, so it’s easy to get caught up in the moment. Staying calm and sticking to your budget will prevent you from overextending financially.

4. Legal and Contractual Obligations:

In South Australia, buying at auction means you are purchasing the property "as is," including any faults or issues. The contract is legally binding, so ensure you or your conveyancer have reviewed any relevant documentation before the auction.

By understanding these key aspects, you’ll be better prepared to navigate the auction process and increase your chances of securing your dream property.