Buying your first property at auction

By the resi financial blog team, 02 September 2013

Buying your first property at auction

The process of purchasing a home at auction at first may seem scary. So if you're a first home buyer thinking of purchasing your first home through this method then here is some advice you may want to consider.

Do your research

To ensure that you are getting a great deal on the house that you're thinking of buying you will need do your research.

Find out how much the reserve is and then compare it with other similar properties on the market.

It's also important to obtain a property inspection report to make sure that the house is structurally sound and has no issues.

You can do this by hiring a builder or property inspector to have a look through the house.

If you have never attended a real estate auction before then attend a few so that you get a feel for how it all works. Just make sure you don't accidentally stick your hand up in the air while attending!

On the day of the auction, the agent is required to allow prospective buyers to view the property a final time before placing any bids. They must also present the auction agreement for review, which may be a good opportunity for your lawyer to have a look through it.

Get pre-approved

Before the auction date it’s a good idea to get  your finance pre-approved. This will allow you to find out how much you can afford to spend, and you will also be ready on auction day to pay for your home.

Auction sales are unconditional, meaning that you must have your finances sorted before you begin the process.

Don't forget to bring your chequebook with you either, as most auctions require a ten per cent deposit on the day of sale.

If you would like to get your finances pre-approved before auction, talk to a resi loan specialist about the home loans we have to offer for first home buyers.

Categories: Home Loans