How to prepare for auction day
An auction can be an exciting and stressful occasion, for both buyers and sellers. They often move so overwhelmingly quick that it’s easy to get caught up in the excitement. That’s why it’s important to be prepared for auction day.
To help you stay grounded during the excitement of an auction there are four steps you should follow.
1. Speak with a mortgage broker prior to the auction
Speaking with a mortgage broker before you attend an auction will help you make an informed bid. They will be able to help work out your budget, give you expert advice what to expect, and arrange pre-approval.
Pre-approval gives you a wonderful advantage on auction day. While it doesn’t guarantee you’ll receive that loan figure it shows you are committed to purchasing. Taking this initial step in the loan process may also help boost your confidence. This comes in handy when you’re competing against a crowd of potential buyers!
2. Do your research
Auctions can be confusing and overwhelming, even for seasoned buyers, so do your research. Not just on what you’re after in a property but also what to expect at auctions, how the process works, budgets, and market trends.
A mortgage broker can help with this research. They can work with you to set a budget, discuss the auction process, and current market trends. It’s also important for you to do your own research. Ask family and friends about their auction experiences and even attend an auction before hand so you’ll know exactly what to expect.
3. Establish a budget (and stick to it)
As we’ve mentioned earlier, setting a budget is important but it’s just as important to stick to it! Work with your broker before the auction to set your ideal budget and the absolute maximum budget! It can be easy to be overwhelmed on auction day so knowing when to call it quits is very important.
4. Keep calm and have fun!
It’s certainly easier said than done. But, remaining calm during the bidding process is vital! To help, ensure you put boundaries in place so you don’t go over your limit. The high stakes drama and sense urgency that surrounds an auction can get your heart racing. Once this adrenaline load fades you may be left feeling anxious or suffering buyers remorse. So take along family or friends to help keep you in check, stick to your budget, and help celebrate when your new purchase!
Whether you’re purchasing your first house, the house you’ve worked all your life for, or an investment property, being prepared on auction day is essential. Working with a broker, doing your research, setting a budget, and remaining calm will help you navigate the chaos of auction day with ease.
John Halloran 0407 903 654
Exceptional Finance East Brisbane