Tips for potential purchasers going to auction

In the current market conditions, we are seeing more and more properties up for auction. There is currently an oversupply of buyers with limited properties available for sale. This creates an environment where market valuations are difficult and many agents and vendors are taking properties to auction, letting the market set the price. Auctions can be simply classed as “market research”.

Below are some tips for potential purchasers on what you need to do to get ready for an auction.

• Think about what property you want to buy; would you like to live on acreage or something residential. This will impact the deposit amount required in some cases and lending capacity.
• Find a good broker who is experienced in dealing with finance in your area, this will be invaluable in helping you secure the right finance for your needs. This process should be started 6 to 8 weeks before you wish to begin looking for a property to purchase.
• Make sure your finances are healthy! Your broker will help you with this. A good broker will advise you on what little debts may need to be paid out before going through the application process.
• Once you have preapproval, make sure your circumstances do not change, this would include change of job and pay rate. If they do change, make sure to tell your broker as this may change your preapproval amount and lending capacity.
• Start speaking to agents in your area and advise them of what you are looking for, they can add you to their data base and contact you when something that suits your needs becomes available.
• Once you find a property make sure to do your due diligence, have a conveyancer or solicitor in place to look over the contract and advise your broker.
• On auction day, stay calm, know your price limit, have your deposit ready to exchange and have fun!

For more information get in contact with Dani from Henley Property on 0425 873 587