Auctions are exciting but for some can be nerve-racking unless you understand the process. Vendors want to get the highest price, whereas buyers are hoping to snap up a good deal, while the selling agents are trying to get as many bidders through the door as possible. It’s an exciting process and it can be your ticket to a great property.
However, it is vital to do in-depth research before making moves into the auction market. Here are our tips on where to look, who to talk to and what reports you should read.
When you decide to buy a home at auction, you have to treat it like an exam. And that means scrubbing up and doing your study! Knowing what properties are selling for around you is a key element of being a successful auction buyer, and there are several ways you can make this happen.
Ask an Agent
Speaking to your local agent is a quick and easy way to get yourself acquainted with the basics of the auction process. They can give you a clear picture of what is happening in your local market, recent auction results, local auction trends and clearance rates. They can explain the auction process, how it works, what is required and how best to prepare yourself. Agents live and breathe real estate so they are a great resource to tap into.
Checking Market Reports
Market reports are a fantastic for keeping up with regional market trends. They can provide you with information on the current state of the market, as well as predictions for which way it will swing. Most reports will cover key statistics such as median house prices, key market trends and much more. The knowledge gained from reports can be invaluable and can give you an edge over the competition.
Attend Some Auctions
One of the best ways to learn the ropes is to get down and see some auctions yourself. Contact your local real estate agent to find out where the next one is happening in your area and go along to watch how it plays out. Sell my house in Richmond
Websites like NSW Fair Trading are a great place to start when you wish to understand the legal processes behind auctions, as well as your rights and responsibilities. This is particularly important if you are bidding interstate, as there may be specific regulations you need to know.
Another similar and useful place to do your research on auctions is the Real Estate Institute of Australia, or the relevant institute to your state.
Wherever you decide to conduct your auction homework, make sure you are thorough! Understand the prices and trends in an area, and you will have made a crucial step on the way to a winning bid. Knowledge is power, and you should take in as much as you can.