Many of the home loans we broker in the Rockingham area are for homes bought at auction. Buying a home at an auction can work out great, but only if you do your homework first. The procedures and the contract you will sign are going to be unique and you will need to know as much as you can going in so you don’t become overwhelmed or make any expensive mistakes.
Before Auction Day
Get a copy of the contract you will have to sign after the auction before auction day. Have your solicitor take a look at the contract to ensure that it is appropriate for you. Make sure you know exactly what you will be signing.
Make sure that you have a schedule and know exactly when the property you want is being auctioned. Your agent should be able to supply this for you. Make sure the property has been inspected and is not in need of extensive or major repairs.
The most important thing you must do: secure financing before auction day. Visit a mortgage broker who can do this for you such as any of us at Smartline Rockingham. We can tell you exactly how much you can borrow. That way, you know how much you can bid. Also, you will usually have to make a ten percent deposit on auction day. Make sure you have it ready.
On Auction Day
Arrive early. Auctions are fast-paced and you need time to acclimate yourself to the hustle and bustle of the event. If the auction is at the property, it gives you one more chance to inspect it yourself.
Be sure to listen to any announcements before the beginning of the auction. These will often contain special conditions relating to the property. If you send a representative to do your bidding, make sure they have a signed document giving them permission.
Call (08) 9527 1800 for more information.