Buying at auction can be daunting, but it doesn’t have to be! As the year goes on and the Brisbane property market returns to its fast-paced state post COVID-19, you can expect to see more and more places be sold this way.
Over the last few weeks, consumer sentiment surrounding in Brisbane property market has quite obviously shifted to be more positive following COVID-19. This means, slowly but surely listing levels are starting to rise and people have become generally more optimistic.
Interestingly, over the lockdown period where onsite auctions were banned, the Brisbane auction market held up remarkably well with clearance rates higher to what they were this time last year before the Federal Election.
As the property market starts to gain momentum and on-site auctions regain their frequency, what better time than to get in the right head space for buying at auction, in case your happy Place comes to market. Here are our top 3 tips when preparing to buy at auction.
Get your Finance Prepared
Being prepared means many things when it comes to auction. Like any major purchase decision, you need to know how much you can afford to bid. This means getting your finance pre-approved by a Broker and not going over that figure. Therefore, when auction day comes around you can bid with confidence knowing your absolute maximum.
Pre-approval is an indication that you will be successful if you apply for finance up to a certain amount, conditional on nothing changing and on the property you buy. As soon as the hammer drops, you’re legally required to go through with the purchase if you have the leading bid.
While you’re getting your ducks in a row with finance, it’s worth going to a few auctions and getting a feel for how they work. Naturally, you’ll start to build relationships with local agents and learn where the market is at. Remember, in Queensland, legislation says that no price guides can be given if the property is going to auction. However, agents will be able to supply a list of comparable sales that will give you an indication of expectations.
Understand Auction conditions and terms
The auction process itself is strictly defined by legislation to ensure fairness for both buyers and sellers. A very important part of this process is that at the fall of the hammer the successful bidder will be required to sign the Contract and pay the deposit (5-10%) on the spot. Standard auction conditions have a 30-day settlement period which can be changed as long as it is discussed and agreed upon with the seller prior to auction. At the end of this period, the balance in cash is due. There’s also no cooling off period when you buy a residential property at auction in Queensland meaning you can’t change your mind.
It pays to be well prepared at auction day and given the increasing popularity in the Brisbane market, you shouldn’t rule out purchasing that way. If your happy Place comes to market via Auction, don’t leave your success to chance.
At Place, we truly believe in the power of Auctions. Our teams offer the best local help in Brisbane so if you’re interested in a property being sold by auction, don’t be afraid to get on the phone to the listing agent and ask any questions you may have in order to best prepare yourself for the big day.
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Article by Daisy Hicks