Stay ahead of the pack at Auction

Buying property at auction can be stressful and intimidating, Qantas Credit Union shares their top tips on how to stay ahead of the pack.

Qantas Credit Union - AFTA@Work November Newsletter article

The auction process can be a daunting experience, however being prepared and armed with a solid strategy may help you to come out a winner on the day. To help we’ve provided some ideas and suggestions so you can get an edge over your bidding competition.

1. Do Your Research

Make sure that you develop a realistic understanding of the property’s true market value. Keep an eye out for sale results of recent comparable properties as this will give you a good indication of what the property is most likely to sell for. With this information set a limit before the auction and stick to it – it’s best to walk away and accept it wasn’t meant to be than to over commit yourself. 

If it’s your first time buying under auction conditions it is a good idea to attend other auctions as a spectator to familiarise yourself with the rules and procedures - and take note of some successful purchasing strategies

2. Know what your purchasing

It is also recommended that you do your due diligence before contemplating bidding on a property. Seek legal advice to review the contract of sale and also arrange both building and pest inspections so you know exactly what you are purchasing!

3. Get Pre-Approval

It is important to visit your financial institution to discuss suitable loan products, discover your borrowing power and get loan pre-approval. At Qantas Credit union we have calculators online to assess your borrowing power and what your repayments might be. We also have lending specialists who can talk you through our range of lending products and assess your loan for conditional approval. 

If you are the winning bidder you will need to pay a deposit at the auction, so it is important to have access to these funds. 

4. Make a good impression

Getting an early edge starts with your personal appearance. The way you dress can create the impression that you have an endless budget which can intimidate your competition so they stop bidding earlier. Make yourself noticed by your competition and auctioneer, and be confident when making a bid.

5. Keep your cool

Keep your emotions in check and your cards close to your chest. Don’t reveal your limit as it may harm your negotiation power. If you aren’t confident or worried that you are too emotionally invested in a property consider help from a 3rd party such as a friend, family member or a professional purchasing agent. It is important to remember that if you use a 3rd party, they will bind you to purchase if their bid is the last one accepted.

6. Be prepared to walk away

Once the bidding has reached your limit and doesn’t look like slowing down, stop bidding. If you were not the successful bidder, accept that it wasn’t meant to be and look forward to finding something that better meets your budget.

Talk to us

If you’d like to talk to us about home loans, savings account or just help on budgeting, call us today on 1300 747 747 or visit www.qantascu.com.au

The information in this article is of a general nature and does not constitute as advice in relation to any investment of purchase. It has been produced without taking into consideration your personal financial circumstances, objectives or needs. Prior to making any investment or purchase you should conduct your own investigation and analysis of any benefits or costs associated with such. You should seek your own independent legal and financial advice. Normal lending criteria applied. Terms and conditions apply and are available on request. Qantas Staff Credit Union Limited trading as Qantas Credit Union ABN 53 087 650 557, AFSL/Australian Credit Licence 238305.