Buying a property on auction is slightly different to your regular property purchase, and particularly so if that property is a distressed sale. Here are a few tips to bear in mind if you're planning to buy a home on auction.
Buying a property on auction is slightly different to your regular property purchase, and particularly so if that property is a distressed sale. So it's important to bear in mind some key things that might help you along the way.
The first is to do your research on the property that you plan to bid on. So make sure you get an estimated market value of the property, look at comparative property sale prices of similar-sized properties in that area, just to make sure that you have all the information you need when bidding.
The second thing I would make sure I do is to look at the terms and conditions of the agreement of sale for that property. So a lot of the time you'll find that auction properties have certain conditions that can be onerous to the potential buyer, for example, making sure that the outstanding rates and taxes are paid by the buyer. Also make sure that you are aware of the fee or upfront deposit that is required in order for you to bid at the auction. This is almost like your ticket to the game. Have this upfront with you, and also make sure that you have suitable finance in place to buy the property, as you may forfeit this fee or deposit if you don't get finance for that property.
And then, lastly, I would really suggest having a conversation with your bank around what possible financial solutions are available to you to purchase that property on auction.