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> > Buying at Auction Step 1 - Doing Your Research

Buying at Auction Step 1 - Doing Your Research

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Chapter 1 in Our Buying at Auction Series

Introduction to our Auction Series

Auctions are exciting but for some can be a nerve-racking method of real estate transaction unless you understand the process. Naturally, vendors want to get the highest price from bidders outbidding each other, whereas buyers are hoping to snap up a good deal, while the selling agents are trying to get as many bidders through the door as possible. It’s an exciting process and it can be your ticket to a great property.

Several factors make auctions so enticing for Australians. The immediacy of the event means that the long house hunt can be shortened to an afternoon’s work, and there are ample opportunities for a great deal for both sellers and buyers.

 

 

The competition is clear-cut, and you are able to register and plan well in advance.  The nature of auctions also means that the price is gauged by the crowd, rather than dictated by a seller across the negotiating table.

However, it is vital to do in-depth research before making moves into the auction market. To get great returns from your bidding, read on with our in-depth auction guide.

When you decide to buy a home at auction, you have to treat it like an exam. And that means scrubbing up and doing your study! Knowing what properties are selling for around you is a key element of being a successful auction buyer, and there are several ways you can make this happen.

Speaking to your local agent is a quick and easy way to get yourself acquainted with the basics of the auction process.  They can give you a clear picture of what is happening in your local market, recent auction results, local auction trends and clearance rates.  They can explain the auction process, how it works, what is required and how best to prepare yourself.  Agents live and breathe real estate so they are a great resource to tap into.

 

 

Doing your Research

When you decide to buy a home at auction, you have to treat it like an exam. And that means scrubbing up and doing your study! Knowing what properties are selling for around you is a key element of being a successful auction buyer, and there are several ways you can make this happen.

 

Ask an agent

Speaking to your local agent is a quick and easy way to get yourself acquainted with the basics of the auction process.  They can give you a clear picture of what is happening in your local market, recent auction results, local auction trends and clearance rates.  They can explain the auction process, how it works, what is required and how best to prepare yourself.  Agents live and breathe real estate so they are a great resource to tap into.

 

 

LJ Hooker's myMarket Report

This report is fantastic for keeping up with regional market trends. It provides information on the current state of the market, as well as predictions for which way it will swing.  It discusses median house prices, key market trends and much more.  The knowledge gained from this report can be invaluable and can give you an edge over the competition.

 

Attend Some Auctions

One of the best ways to learn the ropes is to get down and see some auctions yourself.  Contact your local real estate agent to find out where the next one is happening in your area and go along to watch how it plays out.

 

Government sources

Websites like NSW Fair Trading are a great place to start when you wish to understand the legal processes behind auctions, as well as your rights and responsibilities. This is particularly important if you are bidding interstate, as there may be specific regulations you need to know.

Another similar and useful place to do your research on auctions is the Real Estate Institute of Australia, or the relevant institute to your state.

Wherever you decide to conduct your auction homework, make sure you are thorough! Understand the prices and trends in an area, and you will have made a crucial step on the way to a winning bid. Knowledge is power, and you should take in as much as you can.

 


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