Buying Property

How to Buy Property At Auction: 5 Tips from Our Illawarra Real Estate Agents

Wollongong property auctions are well known as being highly competitive environments. Whether you’re a seasoned investor or a first-time homebuyer, navigating the auction process can be both exhilarating and nerve-wracking. In this blog we’ll outline a guide on how to buy property at auction. To help you buy property at auction and secure your dream home, we’ve gathered five essential auction tips from our experienced Illawarra real estate agents. Read on to find out how to buy Property at auction and you can check out our list of upcoming auctions here! 

1. Do Your Research: Know the Illawarra Market Inside Out

Before stepping into any auction, it’s crucial to have a thorough understanding of the local real estate market. This goes beyond just knowing the suburb; you need to understand recent sales data, property values, and current trends.

  • Attend other auctions: Observe how bidding unfolds, get a feel for the atmosphere, and gauge the level of competition. This will give you a realistic expectation of what to expect on auction day.
  • Consult with your Wollongong agency: Our agents are well-versed in the nuances of the Illawarra market. They can provide invaluable insights into property values, auction strategies, and potential pitfalls to avoid.
  • Utilize online resources: Many websites and platforms offer data on recent sales and property values. This information can help you set a realistic budget and bidding strategy.

2. Due Diligence: Don’t Skip the Details

Auctions move quickly, and there’s no cooling-off period. That’s why due diligence is non-negotiable.

  • Building and pest inspections: Have a qualified professional thoroughly inspect the property for any structural issues or pest infestations. This could save you from costly surprises down the line.
  • Review the contract of sale: Get your solicitor or conveyancer to review the contract before the auction.Understand all the terms and conditions so you’re not caught off guard.
  • Finance pre-approval: Secure pre-approval for your loan. This shows sellers you’re a serious buyer and gives you confidence knowing your borrowing capacity.

3. Set a Clear Budget (And Stick to It!)

Auctions are emotionally charged environments. It’s easy to get caught up in the excitement and bid beyond your means.

  • Determine your maximum bid: Based on your research and financial situation, set a firm limit on how much you’re willing to pay. This is your walk-away point, no matter how much you love the property.
  • Don’t get carried away: The fear of missing out can lead to impulsive bidding. Stay focused on your budget and avoid getting into a bidding war that could stretch your finances.
  • Consider a buyer’s agent: If you’re new to auctions or feel overwhelmed, a buyer’s agent can bid on your behalf and ensure you stay within your budget. Check out Corbett Property Buyers, these guys are great at helping you secure your dream home.

27 North Kiama Drive, Kiama Downs for $1,205,000 | Sold by Dan Mulholland

4. Auction Day Strategy: Be Prepared and Confident

  • Arrive early: Familiarise yourself with the property and register to bid – This will give you time to settle in.
  • Bid confidently: Make your bids clear and decisive.
  • Don’t show your hand: Avoid revealing your maximum bid or getting into conversations with other bidders. Keep your strategy to yourself.

5. When the Hammer Falls: Know Your Next Steps

If you’re the successful bidder, congratulations! Now it’s time to finalize the deal

  • Sign the contract: You’ll need to sign the contract of sale immediately and pay the deposit.
  • Arrange final inspections: Before settlement, conduct a final inspection to ensure the property is in the same condition as when you agreed to buy it.
  • Settlement: Work with your solicitor or conveyancer to complete the settlement process.

Now you’ve nailed our How to Buy Property At Auction guide 🙌🏼

Other information and tips:

> You have to be registered with a number to bid. This is best to do prior to the day but can also be done on auction day.

> All parties must be there to sign the contract unless relevant documentation is signed prior.

> If you open the bidding, you control the bidding – In most cases the first bidder is usually the successful bidder.

> Think of a Wollongong property auction as an open negotiation between one or several parties. If you are the highest bidder over the reserve the property is yours. Sometimes you will be asked to bid on top of your bid, in order to bring both parties closer together. The same thing happens in closed negotiations.

> If the home does not make the reserve, be the under bidder. This gives you the right to negotiate with the vendor and have the first right of refusal on the property.

Partner with a Trusted Wollongong Agency

The Illawarra real estate market is dynamic and competitive. Partnering with a reputable Wollongong real estate agency can give you a significant advantage. Our team of experienced agents has a deep understanding of the local market and can guide you through the entire auction process. Wollongong property auctions can be very past paced and our team will always ensure you know where things are at and guide you through the process, just sing out and we can help you out.

If you’re considering buying property at auction in the Illawarra, contact Molenaar and McNeice today. We’re here to help you make your property dreams a reality and would love to assist you. If you’d like to know more about How to Buy Property At Auction or would like some more auction tips, don’t hesitate to reach out.

Jordy Woolley
dynamic | innovate | style Jordy’s journey at Molenaar and McNeice epitomises the spirit of innovation. She first joined us as an experienced property manager where she hit the ground running with her fierce drive to redefine what property management can look like. Less than 12 month...View Profile ›
Molenaar x McNeice
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