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The basics of approaching an auction: Tips for successful bidding

26 Mar 14

Buying property in Australia in this day and age means you'll most likely come up against an auction situation. These proceedings can be difficult to navigate, especially if this is your first time approaching the real estate market. However, speaking with a property professional can help you get real estate advice about how to successfully purchase a home for you and your family. 

Here are some tips to help you approach the auction market, especially if you're serious about securing real estate in the coming months. 

Organise your finances

Before you approach the market and begin looking into potential homes, it's essential to take a look at your finances. Understanding just how much you have in reserve and generating an idea about how much you'll need to borrow is a great way to give yourself search guidelines for property. 

After all, you don't want to begin looking at real estate out of financial reach. Speaking with a financial expert will help you find the median price of properties in the area you're looking into, which is an essential part of purchasing property at auction. 

Often vendors will want to sign the contracts as soon as the proceeding is finished, which means those who have their finances ready to go straight away are at an advantage. 

Have a well-prepared game plan

Auctions are a naturally competitive environment. It can be easy to get caught up in the rush of bidding for a property, but be sure to keep your budget in mind. Nothing could be worse than securing a property only to find out you've overstepped your limitations and end up in a huge amount of debt. 

Have a bidding limit and if the price soars above this, stop participating. It's better to miss out on a property than be crippled with debt over the long term.