Four Tips to Help You Buy a Home before Auction
You Can Buy a Home Cheaper With the Right Strategy
Have you been asking yourself “how do I win at auction”? Perhaps you’re wondering what auction bidding tactics you should bring to the table? I’m here to tell you that you might not need all of those house auction tips and tricks. You may be able to buy a home before the auction begins.
So, how do you do that? I can let you in on a few secrets. Put these tips into action and you may even get the property for less than it would have sold at auction.
Tip #1 – Find out the Property’s Value
Most properties going up for auction have minimum prices attached to them. This will usually be lower than the actual value of the property. The seller banks on bidders competing against each other to raise the price.
You can use this minimum value to estimate the actual value of the property. Find every scrap of information that you can to back this up. Figure out if the value you come up with suits your budget. If it does, enter negotiations with the property’s agent. With the right bid, you’ll find that sellers usually want to hear more.
Tip #2 – Motivate the Seller
Sellers have many reasons for bringing properties to auction. They will often have tried to sell directly and failed. This means the auction is the end of a long selling effort. When you bid before auction, you offer the seller the chance to end the campaign early.
Try to point out that your bid gets rid of a lot of stress for the seller. It may even save money in auction fees. You can motivate sellers even more if you can show you’d pay faster than the auction house.
Tip #3 – Be Strong in Negotiations
The seller may try to negotiate a higher price than you’ve offered. That’s part of the process. You are in the best position when buying immediately before an auction. Remember, if you walk away that’s one less person showing interest in the property. Also, keep in mind that most property auctions only feature a couple of bidders.
Be fair in negotiations. However, make it clear that you may walk away if the seller presents unfavourable terms. This will make the seller really think about your offer. Most won’t want you to leave when you put an easier sale on the table.
Tip #4 – Timing
All of this is worthless if you don’t have your timing down. You will need four or five days to put these tips into action. Any less than that, and you may be wasting your time.
Speed up the process as much as possible. Create a non-contractual offer with as few terms and conditions as possible. The simpler the offer, the fast the seller can process it. Again, this reduces stress. It also makes the sale more attractive.
The Final Word
Our Buyer’s agents in Sydney, Melbourne, and the North Shore can help you secure a property before it reaches auction. The right strategy will speed things up and help you avoid the bidding process.