As a prospective buyer of a property at auction there are several key things you should understand before bidding. The most important is that you must know and understand your limit and be prepared to stick to Auction Bidders In Melbourne. Getting loan pre-approval and researching prices of comparable homes in the area is also essential. This will help you to avoid overpaying for a home. Remember that there are other costs involved such as legal fees, moving day, inspections and insurance – so make sure you budget for these in your purchase price.
What is bidding process steps?
During the auction process it’s common for the hammer to fall quickly on one bidder. This is due to a number of factors including the excitement of the event, the desire to own a property or being under pressure from a competitive crowd. It’s vital to remain calm and unemotional when bidding. This will ensure you’re not the highest bidder and you can walk away feeling confident that your offer was reasonable.
Before an auction the seller with the help of their agent nominates a reserve price for the property. The property will not sell on the day unless the bidding reaches this amount.
Sometimes the property will not sell, for a number of reasons including the reserve price being too high or the property being ‘passed in’. If the property is passed in the vendor can negotiate a sale with the highest bidder on the day. This is why it’s crucial to be fully informed on the rules and regulations of auctions in your specific state or territory.