How to buy a property at Auction
How to buy at auction
Buying a property at auction can be a daunting experience, but it can also be a great way to get a good deal on a home.
Here are some tips to help you make the most of the auction process:
Get pre-approved for a mortage.
This is the most important step you can take. It will give you an idea of how much you can afford to spend and will make the bidding process more confident.
Set a maximum budget.
This is your absolute limit. Don’t get caught up in the excitement of the auction and overspend.
Research the property.
Know the value of the property and what similar properties in the area have sold for. This will help you set a realistic budget and avoid overpaying.
Understand the auction process.
Know how auctions work and what to expect on the day. This will help you stay calm and make informed decisions.
Seek solicitor advice.
Get your solicitor to check all the documents from the auction pack prior to bidding.
Arrive early at the auction.
This will give you a good seat and a chance to familiarize yourself with the process.
Don't be afraid to start the bidding
This can give you an advantage and show other bidders that you’re serious.
Bid with confidence and authority.
Use a clear and loud voice when bidding.
About Home Loan Pre-Approval
Home loan pre-approval is a good idea for anyone who is considering buying a home, whether at auction or not. It shows sellers that you are serious about buying and can help you get the best possible deal. Also, if you are selling your current home and looking to upgrade – a home loan pre-approval will help you decide your reserve price at the auction.
Before you decide to bid at an auction- make sure you have a home loan pre-approval in place as you are bidding unconditionally. A finance pre-approval will give you the confidence in how much you can spend and what your home loan repayments will look like.
Not all banks are created equally, and the amount of home loan pre-approval will differ depending on each bank’s lending criteria. It’s best to talk to a Mortgage Adviser, who can help you understand your maximum borrowing capacity and put you in the best possible position to buy on The Day.
It’s also important to make sure the property is approved by the bank before bidding at the auction to avoid any potential issues at settlement.
With access to NZ’s widest range of banks and non-bank lenders- I can help you to understand your maximum borrowing capacity, save you time and money by finding the right home loan at best available terms and negotiate competitive interest rates.
If you are looking to purchase a property at auction, I encourage you to reach out to me to discuss your finance options and I can also guide you every step of the way to achieve your property goals. My services are mostly free as I get paid by the lender you chose to work with.
