One of the most effective ways of buying your dream home in a high-demand area is to visit a property auction in Melbourne. However, auction bidding can be stressful if you aren’t properly prepared and have a proper plan or strategy in place. Here is some advice from property advocates in Melbourne on how to best approach this process.
Do the Research
While the traditional offer-and-acceptance method of buying a property allows you to inspect and research a property before signing the sale contract, auction bidding doesn’t. This means you have to gather all your information well in advance and arrive early at the property auction in Melbourne, which also gives you time to evaluate other potential bidders. Too many first-time auction bidders arrive too late to even make a bid on the property they’d like, which is exactly what you want to avoid.
Know Your Bid
Auction bidding can be stressful and high-pressure, especially when you have your heart set on a particular property. However, this is not a time to get caught up in emotions – you have to keep a cool head and stay objective. Once the winning bid is called, there’s no cooling off period allocated to the buyer, so you’re committed from that point on. You’ll also have to put down a deposit immediately that usually amounts to 10% of your bid, so you need to have all your finances in place. This means setting a limit and sticking to it, even when you start feeling pressured to keep up with auction bidding. A good idea is to set a firm limit and then have an additional $5,000 or so as your reserve funds that you can use to out-bid other people who have the same limit as you. Remember that auctions always start at a guide price, but the property won’t sell below its reserve price, which bidders won’t be aware of. Property advocates in Melbourne recommend that it should be 10% or more above the guide price, which helps you determine which property auction in Melbourne to attend.
Watch Your Body Language
One of the biggest mistakes that inexperienced auction bidders make is revealing their enthusiasm about a particular property. Auctioneers will pick up on this quickly and – because it’s their job to sell the property at the highest possible price – they’ll use all their talent and skill to make the bidding as competitive as possible. Instead, prepare yourself beforehand to stay calm, confident and unengaged, and even go alone so you don’t get swept up in your partner’s emotions. Always be ready to walk away from a property auction in Melbourne with nothing – it will help you control your emotions, and this will ultimately help you control the bidding more and get the best price possible.
Get Expert Assistance from Professional Property Advocates in Melbourne
If you are a first-time bidder or don’t feel like you have the experience to handle the pressure of a property auction in Melbourne, hiring property advocates in Melbourne is a great investment. They can help you prepare, set your budget, answer all your questions, accompany you to the auction or even do the auction bidding on your behalf. They’re not emotionally invested in the sale, so they stay objective and have a thorough understanding of the auction process, giving you the best chance for success.