Tag Archives: Auction

3 tips to being successful at a property auction

true-property-3-tips-to-being-successful-at-a-property-auction

When you want to purchase an investment property, whether it is your first time or if you are a seasoned expert, it is always a good idea to check out local auctions to try to snag a great deal. Here are three tips to being successful at an auction.

Have you done your research?

Always research the market you want to buy in and talk to Agents and other experts to make sure you go into the auction fully informed and the property and the neighbourhood. Research online as well if you haven’t already done so. You can check out other auctions to see how they operate if you’ve never been to one before. Always get independent advice on legal, finance and building matters before sale day.

The more research you do ahead of time, the more prepared and calm you will feel on auction day. You’ll know if the property is something you want to buy and you’ll feel confident knowing you are going to get a great deal.

Do you know the rules of an auction?

Get there early and familiarise yourself with the rules of the auction. In Victoria, the auction rules must be displayed at least 30 mins before the start. The auctioneer will officially let everyone know that he will run the auction according to the rules of the state and bidders mustn’t make false bids or cause a disruption. You can get a large penalty if you are caught doing this.

What’s your upper limit?

Auction are very exciting, and it can be easy to get caught up in the moment. Know what your upper bound is before you start and stick to it. The auctioneer wants to get the best price possible, so they encourage bidders to compete. Know what the property is worth and what your budget is.

What do you think about auctions? Let us know in the comments if you’ve purchased an investment property at an auction, or if you plan to in the future.

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Buying an investment property at an auction

True Property - buying an investment property at an auction

All property investors, whether it’s their first property or if they are a seasoned expert, want to snag a great deal. Heading to your local auction can be a great place to find a bargain.

Here are 3 tips to being successful at an auction.

Do Your Homework 

Always research the market, both online and off, then talk to Real Estate Agents so you go into the auction fully informed.

Go to other auctions to see how they work.  You may think you know how they work because you saw one once on tv, but in real life, they are quite different.

Once you have done your research and are up to speed with how things operate, always get expert advice on legal, finance and building matters.

Do you know the rules

Auctions have very strict rules so read through them as soon as you get there. In Victoria, the auction rules must be displayed at least 30 mins before the start.

The auctioneer must tell bidders that the auction will be conducted according to the auction rules and regulations.

It is illegal to make a false bid, hinder another bidder, or in any way intentionally disrupt an auction.  You can be fined if you are caught doing any of these things.

Stick to your budget

When at an auction it can be easy to get caught up in the moment and the excitement of bidding.

Before you start, have a really clear idea of what your limit is and don’t go over that.

The auctioneer is trained to try to get the best price possible so they might encourage you to compete.

Check out Consumer Affairs Victoria for more information.

Have you ever bought a property at an auction? Did you score yourself a bargain or get caught up in the moment and pay too much just so you could win?

Should I consider buying at a Mortgagee Sale?

 

Should I consider buying at a Mortgagee Sale? Whether you a new on the property ladder or an investor looking to snap up a bargain, looking at buying a property at a Mortgagee Sale or Auction could be the way to go. While it seems like it could be a good deal, buyers have to be aware of a few things before they sign the contract.

Is it really a bargain?

A mortgagee sale is an auction and potential buyers can get excited and carried away with their bidding. Always decide on your maximum budget and arrange to get finance before attending the auction. Mortgagee sales are often rushed so the settlement period may be less than a regular sale or auction. It always pays to do your homework before the auction day and get all your LIM and builders reports beforehand. Read the purchase agreement thoroughly because sometimes the agreement that purchasers sign at a mortgagee sale does not include all of the fine print clauses that are there to protect purchasers in standard auction agreements.

Is it in good condition?

While you may go and view the property before the auction, sometime the previous owners may be upset the bank is selling it and trash the place before the settlement date. Always arrange insurance from the day of the auction, just to be on the safe side. Also, it is safe to assume the previous owners fell on hard times financially and haven’t kept up with  the maintenance of the property, so any money you save may have to go towards renovations. Be aware that often the chattels are not included in the sale and the previous owners may remove them.

While there are bargains to be found at mortgagee sales, it is definitely buyer beware so always take necessary precautions to protect yourself and your assets.

Have you ever snapped up a bargain at a mortgagee sale?

 

Getting Your Property Ready to Sell at an Auction

Getting Your Property Ready to Sell at an Auction

Following on from Buying a Property at an Auction, what can you do if you are on the other side and are selling a property at an auction?  This could either be an investment property that you want to let go, or your primary residence. Whichever it is, you really want to make sure your property is looking its best, so doing some basic maintenance will make all the difference.

Clean the house

Obviously, the first thing to do is give the property a thorough cleaning. It may be worth it to get professional carpet and curtain cleaners in to give it a proper going over. Scrub any mould or mildew that may be in the bathroom and empty all kitchen cupboards to give everything a good clean.  If you are selling the property before it has been emptied, then make sure you clean everything that’s in it. Dust all furniture and wipe any ornaments and decorations. This includes the tops of picture frames and be sure to get any fingerprints or other marks off the TV! On the day of the auction, spray an odour-eliminating spray to get rid of any smells, especially if there have been pets in the house.

Basic Maintenance

Check all taps to make sure they are not leaky and loose. Look at all the tiles and scrub them if they need it and re-attach any that might have come unstuck. Turn on all the lights to make sure the light bulbs all work. Look at the extractor fans if they are installed.  If there’s an air conditioning unit, make sure that the filters are taken out and give them a thorough cleaning too.

Tend to Gardens

Spend a lot of time outside getting everything just right. People see the front of the house first so make that your prime focus. You don’t want people turned off before they even get there! Mow the lawns, trim edges and weed all the gardens. Make it look as welcoming as you possibly can. Get rid of all rubbish before the auction. Check everything is tidy outside and put away in its proper place. Don’t forget to sweep out the garage and outside shed too!

Have I missed anything? Comment below and leave me your essential cleaning tips to get ready for an auction. Even if you are having an open home for your rental property or some potential buyers are coming to look, the same principles apply.

 

 

Buying a Property at an Auction

When you want to buy a property, whether it is your first time or if you are a seasoned expert, it is always a good idea to check out local auctions to try to snag a great deal. Here are 3 tips to being successful at an auction.Buying a Property at an Auction

1. Do Your Research

Always research the market and talk to Real Estate Agents to ensure you go into an auction fully informed. It won’t hurt to look online as well. You can also attend other auctions to see how they operate. Always get independent, expert help on legal, finance and building matters.

2. Know the Rules

Auctions have very strict rules so read through them beforehand. In Victoria, the auction rules must be displayed at least 30 mins before the start. The auctioneer must tell bidders that the auction will be conducted according to the auction rules and regulations. It is illegal to make a false bid, hinder another bidder, or in any way intentionally disrupt an auction.  You can be fined if you are caught doing any of these things.

3.  Watch your limit

When at an auction it can be easy to get caught up in the moment and the excitement of bidding. Before you start, have a really clear idea of what your limit is and don’t go over that.  Auctioneers are trained to try to get the best price possible so may encourage bidders to compete.

Check out Consumer Affairs Victoria for more information.

Have you ever bought a property at an auction? Did you snag a bargain or get caught up in the moment and pay too much just so you could win?