Tips to successfully purchase property at auction

14.11.13Going to auction is an increasingly popular way for people to sell their properties across the nation. There are a number of reasons for this, but one of the most convincing is the clearance rates of these proceedings in cities like Melbourne and Sydney.

After all, they’ve been tracking clearance rates around 75 to 85 per cent for the last few months, highlighting not only an increasing confidence from the buyers markets – but also a growing demand for property in general.

Therefore, bidding on an auction can be extremely competitive. Chances are, if you’re planning on purchasing property in the near future, you will have to take your chances at auction. However, there are a number of ways to arm yourself and prepare for success.

Benefits of pre approval

Before you begin to immerse yourself in the auction arena, doing preliminary research is one of the most crucial aspects of purchasing property. And this doesn’t just extend to looking into the market and finding a property you love in an area that suits your lifestyle.

For example, investigating your home loan options can help to facilitate your auction experience. Once you’ve decided on the type of home loan you should secure, getting a home loan pre approval should be your next step.

This step is basically to help streamline the transaction in the event that you win the auction. Often, many vendors will want to sign the paperwork as soon as possible – sometimes as soon as the auction itself is finished.

Having your home loan approved and ready to go can eliminate the risk of missing out due to procrastination and delayed proceedings.

Setting financial limits

With such a competitive atmosphere, it can be easy to get swept up in the excitement of an auction and end up losing your financial inhibitions. After all, becoming intoxicated on the thought of a new home is challenging to ignore.

However, setting yourself a definitive budget and sticking to it is important. You don’t want to overextend your own deposit amount and end up winning the property without the means to pay it off.

Keeping your head above water financially, and knowing when to back off it a crucial aspect to successfully securing real estate in the current market. With house prices continually increasing across the country, these economic potholes can sometimes be difficult to see.

Don’t get too attached

Remember; at the end of the day, it’s simply a property. If you miss out the first time, there will be plenty more real estate fish in the sea.

Remaining impartial can help you keep a cool, calm and collected head, which will help to negate the possibility of any mistakes happening during your auction experience.

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