New research by comparison site finder.com.au has found 18 per cent of Australians are afraid of buying and selling houses at auction, while for Generation Ys it’s a much higher at 27 per cent.
Every weekend, our REBAA members see too many buyers making some bad mistakes at auction. They don’t know how to bid so they end up bidding against themselves.
Knowing how and when to bid combined with an overall fear of public speaking can make some buyers genuinely petrified of bidding in public.
People can fight their fear of auctions by employing a professional buyer’s agent or attending lots of auctions to learn how to avoid mistakes.
Here are REBAA’s tips for buying at auction:
1. Do your homework
Don’t turn up on the day and register unless you have done all the due
diligence including seeking independent building, pest and electrical reports.
2. Stick to the budget
Don’t rely on auto valuation applications or agent guides. Do your own
research or better yet, pay for a buyer’s agent or a registered valuer to value
the property in advance.
3. Consider the alternatives
If the budget is tight, maybe buying at auction isn’t the best plan. Paying for
reports and legal advice each time you go to auction can be costly and
quickly drains the bank balance. Have a buffer you’re prepared to lose so
you don’t end up with no deposit. Consider a private treaty sale.
