1st March 2023 / Sarah Lowry: How to Prepare for Buying at Auction

It's a good time to be a buyer, with prices in some areas trending down and owners with property on the market keen to strike a deal.

Many pundits believe we've entered a buyer's market, although the reality of higher interest rates tempers that judgement.

As an experienced local agency, we've worked through similar economic cycles before.

And this is what we've found: some clients aiming to upgrade reflect on these economic moments with regret, wishing they'd been more courageous and less gun-shy of the interest rate environment.

Today, prices are being pitched at increasingly attractive levels by motivated sellers.

Critical to any buying decision is your own personal circumstances. If you have a secure income and can make the numbers work, this is an excellent opportunity to strike a great deal.

Wait too long, and you may be in a fast-rising market with limited opportunities.

As our 7.8% inflation rate begins to fall by the end of the year, the pain of rising mortgage costs will dissipate, and that will likely kick-start a seller's market once more.

We believe now is a great time to start your preparations for a purchase. Below, we've listed some tips for approaching the task if your next dream home is to be sold at auction.

In the meantime, if we can help sell your home, please do not hesitate to contact us. We can discuss price trends, buyer preferences and marketing ideas that will maximise the value of your property.

Attend Auctions

If you've never bought at an auction, familiarising yourself with the process is a great idea. Attend at least three to see how the auctioneer and agents operate and, just as importantly, how bidders behave.

Do Your Research!

Never go into an auction with a vague idea of the property's value. You should know when you're chasing a bargain or when it's time to bail out as rival bidders push beyond market pricing. Bid with your head, not your heart. If you're worried you'll get carried away, ask a trusted friend or an agent to bid for you.

Cash is King

If you're successful at auction, you'd better have your finances organised. You can't rock up, win the day, and then confess you need to talk to your bank. That isn't how it works. You'll be on the hook, so ensure you have a pre-approved loan!

Talk to Your Lender

With rates moving every month, you need an open line of communication with your lender or broker. You must know and keep to your bidding limit. Avoid that scary sensation when you realise you're not sure you have sufficient funds. No one needs that stress.

Dream, Meet Reality

You may have found your dream home but commission a building inspection to ensure it's not a nightmare. An inspection report identifies whether you need additional funds for renovation or remediation. This should temper your bidding. The seller may offer an inspection report but commission your own.

Sales Contracts

If you're a serious bidder, ask your solicitor to review the sales contract before the auction.

Early Offer

There's no harm in making an offer ahead of the auction. You never know your luck. The seller may return to you if the property is passed in.

If we can provide any further information, please don't hesitate to reach out to your local Fletchers area exprt.