The Queensland property market is a competitive one, with property auctions being a popular way to buy property in the state.
Finding success at a property auction involves a bit of forward planning and a smart approach to buying. Understanding how buying at auction works will help you have an edge over the competition, giving you confidence as you enter the auction.
Here’s what you should know before buying at auction.
Why should you buy at auction?
There are a lot of benefits to buying at an auction. According to real estate agents and auctioneers, buying at auction is:
- Transparent. There are no hidden surprises, and you get to see what people think the property is really worth.
- Fast. An auction can be over in a matter of minutes, leaving you the owner of your new home without the back and forth that can come with private sales.
- Worthwhile. You could secure a truly amazing property without fear of missing out because your agent didn’t know about it.
Buying at auction versus private sale
Things move very quickly when buying at auction. You’ll get to see exactly who your competition is and bid an amount you’re comfortable with. Once the gravel falls, the property is yours.
With a private sale, there’s a lot of room for things to go wrong. You could offer much more than other buyers in the hope of securing the property, paying over the odds in the process. Sellers can also pull out and there could be a long wait between putting in your offer and getting the keys. You can also back out of a private sale if, for example, conditions such as building and pest or finance aren’t met.
How does a house auction work?
Learning how buying at auction works can help you prepare. When buying at auction, the property will have a reserve price, which is the minimum the seller will accept. You will need to register as a bidder, and are given a paddle with which you can make your bid. Bidders will make their offers until one person outbids the rest. The property is only officially on the market once the reserve price the seller sets prior to the auction has been met. In the case that the reserve isn’t met, the sale will then be negotiated between the seller and any interested buyer.
Top tips for buying at auction in Queensland
Buying at auction can be a great way to buy a property, but it’s important to know what you’re doing. Some top tips include:
- Do your research. Try going to some auctions to learn how they work so that you know what to expect when you go to your own.
- Inspect the property. There is no cooling-off period at an auction, even if the property needs significant work. Get an inspection and find out the cost of any work and repairs before you put in a bid.
- Get your conveyancing solicitor on board to clear the property and ensure that you’re in a position to bid.
- Arrange your finance so that you know you can afford the sale if you’re the highest bidder. You will need to pay a deposit of up to 10% if you are the successful bidder on the day.
- Set your limit. It’s easy to get excited when bidding at an auction, but going over your budget could cause many problems.
Conveyancing with Victor Legal
Are you interested in buying a property at auction? Get a quote for conveyancing services from Brisbane’s best property lawyers. Contact us today, and we’ll be more than happy to help you on the journey to buying your new home.