Step 1. LOVE IT.
Step 2. Know your Capacity
Some people phrase this as know your limit. Sure, that’s what I meant to say…kind of. What I am trying to say is know your capability to repay and your Willingness to commit. People who buy property pay the highest price. That’s a fact. Artificial limits create remorse when the property sells just out of your price range but within your reach. We hear about it every day, believe me. Now I am not saying lose your mind (we’ve seen that too!), I am saying though know what you can and are willing to do and don’t be afraid to go there if you want to buy the property.
Even writing this makes me feel a bit nervous if I am honest, but my experience with so many buyers underwrites my confidence to proceed. If you want a greater sense of certainty, have a look at the historical performance of the suburb and surrounding suburbs and get an greater understanding of what you can expect in terms of growth, it puts the purchase price into perspective.
Step 3. Do your homework
Step 4. Be Bold.
No I am not saying be that person at the auction who bids first, I am saying you need to bid to buy. Going back to the Surrey Hills auction I was thrilled to see the persistence of the successful purchaser throughout the auction. Surrounded by family, she bid with confidence. The crowd knew she was a player from the first bid. It wasn’t the size of the bid it was the boldness of the bidder and her clear engagement with the process. At one point, when the agent finally put the property on the market over $2.1 million, the crowd genuinely cheered. The momentum she had built and the support of the crowd carried her to a successful purchase.
No I know this guide is a little less list and more approach, but I guess that’s what I really was trying to highlight. Buying at auction is more art than craft. Whilst some might argue this bidding technique works better or swooping at the last minute is the only way, I am less about the approach and more about helping our clients achieve the outcome they desire. Let’s be honest, only one person can buy a home, so if you’re going to bid, you may as well be in a position to win.