Sometimes, the house you want is being sold by auction. The mortgage brokers at Smartline Rockingham have helped a lot of homebuyers in Kwinana and surrounding areas obtain home loans for homes sold by auction, but the process is a little different because you will need a pre-approved loan to know how much money you can spend on your home. Here are some tips for buying a home at an auction.
As we mentioned, the first thing you want to do is see a mortgage broker for a pre-approval. That will allow you to know how high you can bid. But don’t let the maximum amount be the only factor.
One great way to prepare: go to a few other property auctions to get some experience in how they work. Another: find out the quoted price and the actual sale from the agents. This is important because you want to know how much to bid on the home you want. Too much will waste your money. Too little will lose the home to another bidder.
Ears Open, Mouth Shut
Do not let the agent, the seller or any of your competition know your maximum bid. It will always work against you in every scenario. Others knowing your limit will cause the price to be raised to that limit.
Do You Need a Representative?
Some people thrive in a competitive atmosphere like an auction. Some don’t. If you are one of the latter, hire a third-party bidder to represent you at the auction.
Timing is Everything
If you bid too early, you may push the price higher. If you bid too late, the hammer may fall before your bid goes in. We recommend waiting until the vendor bids are placed.
Easy Does It
Don’t allow the excitement of the moment to push your bid higher than you planned. Never bid more than your pre-approved financing number. There are rules and occasional legal consequences for breaking them. Keep an even keel.
Call Smartline Rockingham
For a pre-approved home loan, call Smartline Rockingham today: (08) 9527 1800.