Canberra is the real estate auction capital
Canberra recorded 32.4% of properties sold by auction in the past year - equal only to Melbourne.
Buying a house at auction
Recently, allhomes reported that Canberra is set to become the auction capital of Australia. This is because, according to Domain data, Canberra has the greatest number of homes bought at real estate auction. There were 32.4% of properties sold in the past year – equal only to Melbourne.
But what if the thought of buying a house at auction terrifies you? Here are some tips on how to get through the ordeal.
Understand the price
If you find yourself at a real estate auction and you want to bid, it pays to know the market. There are lots of apps and website that you can use. Allhomes holds the recorded sales history of most properties that have sold in Canberra and the surrounding suburbs. In the research section of the site it’s easy to see:
- how much the property last sold for,
- recent prices that properties in the suburb are selling for and
- what is a reasonable price to pay based on similar properties.
Many properties that have sold recently still have photos so you can compare you home to theirs.
Before you start bidding at auction, discuss the maximum price you are willing to bid to – and get a pre-approval for a loan first so you are sure of what you can afford.
Set your bidding strategy
Some people like to start the bidding confidently with a price that will knock out any competitors. Others like to sit back and wait to see who is bidding and what their prepared to bid to. They often wait until other bidders have exhausted themselves, then come in with a winning bid. Whatever your strategy, talk it through with your partner before the auction so they know what to expect.
Get a friend or expert to help
Many real estate agents – or even your friends – will happily bid for you. This can take the emotion out of the situation and the pressure off you. Buyer’s agents will also bid for you and are very experienced at negotiating with real estate agents and owners if the property is passed in.
If you don’t like bidding at auction, but you are looking to buy a home, don’t let this mean you miss out. Given the great majority of properties in Canberra are being sold at auction, get a strategy or ask a friend to help, so that you can buy a the home you want.
Contact Milestone Lending for a pre-approval before you go to auction.
