1. Knowledge is Power – Do your research.
Understanding the market and researching the property is a must before bidding at any auction.
Important things to research.
- Recent comparable sale prices
- Current listings and their asking prices
- Potential rental income if using as an investment
- Subject property history & building reports.
2. Get Auction Savvy.
Go to as many auctions as possible and familiarise yourself with the procedures and processes. Also take note of the strategies and tactics winning bidders may use to secure the property. This will not only remove some of the nerves on auction day when your turn comes around but will also give you a good insight into actual sales prices. Watch an actual MMJ auction video.
3. Finances First.
It is essential to have your finances in order well before auction day. The winning bid at an auction is a binding contract and you will need your deposit on the day, usually 10%. Obtaining pre-approval for finance should you require it, is a must and will assist in setting your limit.
4. Seek legal advice early.
You should obtain a copy of the contract of sale and have your solicitor or conveyancer review it. They may suggest additions or variations to the contract, which can be negotiated and inserted into the contract prior to auction. Be sure to check that the contract on the day of auction is the same as the copy you obtained.
5. Show your Interest.
Communicate your intentions to purchase with the agents selling the property. The agents will then be able to assist you during the auction day and guide you through the process. You may be required to formally register to bid on the day, be sure to have your identification with you.