Buying a home

How to prepare for auctions - The Auction Advantage Ep 2

14 August 2018

Nicole Jacobs, buyers advocate for Channel Nine's The Block, presents The Auction Advantage: tips to help you understand the auction process.

When you’re in the market to buy a new property, auction day is an exciting time. But of course, it can also be fraught with nerves, so it pays to be prepared.

How to prepare for auction day

[Nicole Jacobs]: When you’re looking to buy a property, it’s really important that you know that it’s the right property.

At auction, you buy ‘as is’, so you need to do all of your work prior to know what you’re getting into.

First of all, know how much money you’ve got to spend, and have it in writing.

There’s no use spending a lot of Saturdays out there looking at a property that doesn’t meet the budget that you’re actually going to be given to purchase the property.

The next step of course, is then going out and finding the property that you really want to buy.

Once you’ve identified the property, you need to have the contracts looked at.

So it’s really important that you don’t bid on anything before a solicitor or a conveyancer have overlooked those contracts.

It’s also important to have that property looked at.

You may need to bring in a building and pest company to actually look at the property for you.

If it needs a new roof, you need to know it needs a new roof prior to the auction and how much it’s going to cost you, because you can factor that in to how much you’re going to go to on auction day.

But also if the property gets passed in–

[Auctioneer]: My vendors have instructed me to pass the property in to Mr Frank Falenti–

[Nicole Jacobs]: you are there armed with a lot of information that helps you negotiate the sale price down.

One of the other key factors before an auction is to know there are different rules of engagement for each state.

In Victoria, you don’t actually have to register to bid.

If you’re in New South Wales or Queensland however, you do need to register to bid.

Do the due diligence, know where you need to be in the market to buy that property, and then you can factor in.

Chances are if you’re emotionally attached to this property, there’s probably one or two other buyers who are also attached.

Nicole’s top tips

Make sure you’re prepared so you can bid at auction with confidence:

Organise your finances before auction day – know how much money you have to spend and have it in writing.

Need help with your finances? Contact a Suncorp Mobile Lender.
Find a property that’s worth your money – do your research and go out there to find the property you actually want to buy.
Have your contracts checked before auction – don’t bid on anything until a solicitor or conveyancer has looked over any contracts.

Contact a lawlabs convyancer.
Organise a building and pest inspection – you’ll have more confidence at auction if you’re fully informed about the property’s condition and know what extra costs might be involved if you win.

Need help booking a building inspection? Contact a building and pest inspector.
Know the rules of engagement in your state – each state in Australia has different rules around purchasing a property. Do your due diligence and make sure you know what you need, as well as where you need to be and when.