Auctions are a unique event focusing market attention on one property, providing a competitive buying environment and a clear deadline. They also create urgency for buyers who wish to purchase the property and, understandably, potential buyers often feel excitement as well as heightened anxiety in the lead up to an auction.
However, you can limit your auction day stress by putting in place a rigorous plan that includes doing your homework, setting yourself a strict financial limit and understanding that if it doesn’t work, there is always next time.
1. Research - In today’s digital world, much of the initial work involved in buying a property can be done online. Research the area where you want to buy and the type of home you want and you will get a fairly accurate estimate of going prices. Enlist your agent’s help as well, their local market knowledge is invaluable.
2. Declare your interest - Let the real estate agent know you are interested in a property by registering early. Avoid leaving it until the day of the sale as you might just miss out. Some properties are sold prior to auction and if you haven’t declared your interest, then no one will know you are a serious contender.
3. Use a proxy - If the whole notion of an auction is too daunting, you may wish to enlist the help of a trusted friend, or professional buyers’ agent. This helps take the emotion out of the bidding process and ensures you stick to your limit – not get carried away. With today’s technology, you can even bypass the event altogether, choosing to watch your proxy undertake your bidding for you on a ‘live’ auction site such as gavl.com.au.
For all their potential for anguish, the best thing about auctions is their finality. There is no cooling off period and no nail-biting wait. If you are the successful bidder, it is all signed, sealed and delivered on the day. This is why auctions make up a significant number of all property sales across Melbourne.
