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Starting 2017 off with a bang: How to prepare for an auction

By Ben Faulks

Little is as aggravating, exciting and satisfying as buying property through auction. With gorgeous Belconnen real estate on the market, you're able to find an abundance of magnificent auction opportunities in the new year. 

One of the most important things leading up to auctions, is to prepare yourself well. After all, you want to make sure you're comfortable with, not scared by, the process of placing bids and competing for the home of your dreams. 

So, without further ado, here are some of our top tips to ensure you are ready to bid at an auction with style:

1) Do your research

Studying the market you want to buy in is one of the most important steps in the buying process. Knowing how much you should secure with a  home loan pre-approval and what sort of reserve price is most likely, is something you can only do with appropriate research. 

Local real estate competition, for example, is easily seen in auction clearance rates. Information around recently sold properties can give you a great insight into what you might pay, so comparing sales price data can help you find good deals around the Canberra market. 

Since real estate agents can't disclose reserve prices before they're reached at auction, it's your job to do as much preparation research as possible prior to the big day. 

2) Always inspect first 

Regardless whether you're looking to buy or sell a home, inspections are nonnegotiable musts. 

It means that you will be prepared to answer any questions should they arise during an open home. Give yourself the biggest knowledge pool to swim in because it will make future decisions a lot less stressful.

If you are a buyer, then you know that an inspection should be absolutely mandatory before you sign anything. Don't let your excitement and enthusiasm run away on you.

3) Be realistic about your limits

Of course you want to get the ultimate dream-home. This is where your mindset is critical when it comes to being successful at auction. 

On the day, you'll need to balance the stress of bidding, keeping your budget limit in mind and coming ever closer to buying a property. Adding to this is the fact that in the heat of the moment, it's likely competition will become passionate and the auctioneer will convey urgency. This is where you need to try avoid falling into the trap of thinking "just a little bit higher". 

The reality is that your budget can only stretch so far before it becomes too much to handle. Patience pays off, so take breaks if you can sense yourself getting carried away, or have an agent bid on your behalf. 

4) Don't forget to register

Before the auction itself, you'll need to register to bid – otherwise you can't bid at all.

At this stage, it's always a good idea to ask about any changes to the contract as well, as there could be a deal breaker with late changes that make registering not even be worth it on the day. 

5) Prepare your finances

Are you bidding for a property in Belconnen, or anywhere in Canberra as a matter of fact? Then you should get home loan pre-approval. As there's no cooling-off period with auctions, you want to avoid being locked into a property but unable to follow through because of a mortgage rejection.

This process of pre-approval also gives you an upper budget limit to stick by. 

6) Confidence is key

Both buyers and sellers at auctions should remember that a confident mindset can make a big difference. Walk with your head high – it's not about intimidating other bidders, but there can be a psychological advantage if you enter the ring confidently. 

Are you ready to start the year off well at an auction? Get in touch with our team at Ray White Belconnen today. 

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