10.10.2017 Buying Tips

6 Top Tips For Buying At Auction In Sydney

6 Top Tips For Buying At Auction In Sydney

It can be a whirlwind navigating the buying process in a busy market like Sydney’s eastern suburbs, even if it’s not your first time.

We explain what you need to have in order, how to outsmart your competitors, and when might be a good time to seek some professional help.

1. Money matters

Nothing is more empowering than having a full grasp of your financial situation before taking your next, or first, property plunge. Make sure you have some simple things in place:

  • First and foremost, talk to your bank or broker and know your budget.
  • Get pre-approved for your loan and leave yourself some room to move.
  • When buying at an auction you’ll need to pay the deposit on the same day, so have a deposit ready and know how to get access to it.

2. Knowledge is power

It’s all too easy for buyers to become disheartened and embrace the misconception that they can’t afford a property, based on media reports or recent sales that have exceeded price expectations. Often this is due to perceptions of underquoting, with buyers unable to equate what an agent is quoting with inflated market results.

It pays to research sold prices for comparable properties, rather than price guides for properties that are currently for sale.

Our team values transparency and keeps an agency agreement on display at inspections where we detail the price guide and highlight what we’ve agreed with the vendor, as well as the three most recent comparable sales. As we get an appreciation for the value prospective buyers are placing on the property during the campaign, we update our pricing guide to match while keeping buyers informed.

3. Be informed about the auction process

Most properties in Sydney’s East go to auction unless they sell pre-auction or off-market. So familiarise yourself with the auction process. We invite you to come and watch some of ours to get a feel for how they can unfold.

Things to remember:

  • You must register to bid before the auction.
  • Let the agent know as soon as the property passes in that you would like to be included in negotiations.
  • You waive your right to a cooling-off period when you buy at auction.
  • You will need to pay a deposit on the day.

4. Have your buying team ready

Secure the services of a reputable conveyancer or a solicitor to handle the transaction on your behalf. Typically a conveyancer or a solicitor takes care of the legal documentation before, during and after the sale – such as conducting title searches, strata searches, lodging the contract of sale and liaising with the sellers and your financial institution.

In NSW, it’s your responsibility to source a pest and building inspection. It’s crucial that you do this as it can have implications for everything from your finance to insurance. Buildings, particularly older properties, can have hidden issues that you will be unable to identify. Our team can connect you with a third-party provider who will arrange the report for you.

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5. Get an expert on your side

You wouldn’t represent yourself in a $1 million lawsuit, would you?

People tend to dismiss the idea of representation in real estate transactions, but when you’re dealing with the amount of money, and pressure, inherent in the current Sydney housing market, a buyer’s agent could be the right decision for you.

A qualified buyers agent not only knows the ins and outs of the auction process – and can handle the bidding for you – but they also keep a finger on the market at all times. They know about pre-market and off-market opportunities that you won’t find listed on any real estate site. They also have direct connections to multiple real estate agents and they know how, and when, to negotiate.

Crucially, a buyer’s agent works for you, the buyer, alone. They act in your best interest and take a lot of the emotion out of the buying equation. They also know the market intimately and will advise you when you’re paying too much and should look elsewhere.

6. Getting in ahead of time

In a competitive market, we see many buyers making offers ahead of auctions. Making an offer ahead of an auction can be a smart move, not only for your nerves but also if your heart is absolutely set on a property and you really want to secure it.

We also undertake a large number of off-market sales for Eastern Suburbs properties. These homes are never advertised, and you need to be connected to a trusted real estate agent to find out about these opportunities.

If you’re keen to hear about off-market sales in Sydney’s eastern suburbs as soon as they become available, sign up for exclusive access to our database today.