How to successfully buy at auction

With home prices moving rapidly in recent years, buying at auction can be a tricky process.

Fortunately, there are some simple steps you can take to be prepared to bid successfully.

Know your price – It’s important that you do your research ahead of auction because the guide price is not always indicative of what properties are selling for. Use comparable sales data for the suburb to get a clear idea.

Pre-register and read the terms and conditions – It’s vital to register and get copies of all the important documentation. If you’re unsure, have a professional look them over for you.

Get your finances in order – When buying at auction you are making an unconditional purchase. This means you need to make sure you have a preapproval in place, so you can be confident in getting a loan.

Do all your inspections in advance – It’s also important that you have the property scoped out well ahead of time. You can’t do inspections later when buying at auction.

Stick to your price – Once you know how much you can spend and how much the property is worth, put your plan together and stick with your price. Try not to get emotional and bid confidently.