Interesting article in the Wellington Times about the movement to purchasing homes sight unseen. On…
We know what it’s like – you’ve seen a home you LOVE and want to move to the Sunshine Coast, but the property is going to auction. And that incites a wave of nerves about bidding! Having helped multiple clients secure their Sunshine Coast home at auction, I have learnt a lot of lessons along the way.
In a seller’s market, auctions have been the preferred selling method for a lot of agents. They generate excitement, fear of missing out by buyers, and have the potential to secure the best price for vendors in this type of market.
So what can you do, to maximise your chances of securing your dream Sunshine Coast home, without overpaying? Here are 5 top tips to help:
- Know the rules of the game
In Queensland you must be registered as a bidder prior to the Auction, in order to be able to bid on a property. A property secured at auction is an unconditional contract – so you must have all your finance, building and pest – and any other conditions, all sorted out beforehand. You also need to make sure you and your conveyancer have looked over the contract before auction day. It is a legal requirement for the vendor’s agent to supply this.
The typical settlement timeframe for an auction property is 30 days here in Queensland. So if you have a different preferred timeframe, it is worthwhile flagging this prior to the auction with the selling agent. That way they can make sure that the vendor is comfortable with this should you be successful.
A link to Queensland Government’s information on buying at auction is below:
- Have a strategy for buying your Sunshine Coast property at auction and be strict on your pricing limit
It is so easy to become emotionally tied to a property, and auctions play to that emotion – making you feel like you just don’t want to miss out. I work with my clients to set some clear pricing limits, and we have to be willing to walk away if the auction goes beyond those limits. Someone else may be willing to pay well above what a property is worth to you personally….but there will always be another Sunshine Coast home out there for you if the price is too high.
- Keep an eye on body language – of other bidders, and of the auctioneer / bidding agent, and yourself
It’s a good idea to watch the body language of those active bidders at the auction – you may be able to get a sense then of when other bidders may be nearing their limits. Position yourself in a location that enables you good visibility of both the auctioneer and the other bidders. The auctioneer will try to create urgency around bidding – playing to the emotions of those who don’t want to miss out. So make sure you stay calm throughout and it can be helpful to have someone you trust with you.
- Listen for when the property is “on the market”
“On the market” means that the property has reached its reserve and will be sold at the auction. A lot of auctioneers will announce when the property is “on the market”. Some don’t however, and they are not legally required to do so in Queensland. Once the property is on the market, it is worthwhile trying to tighten the bidding if you can to smaller increments – in some situations this might not always work, but the auctioneer should still accept your bid!
- Get someone to help you
If you’re not 100% confident in the bidding process, get someone you know (or the Home Scouts team) to take the stress away. We can do your bidding for you to secure your Sunshine Coast home. We have done it before, and are not emotionally tied to the property which can help in auction situations.
Good luck and do reach out if you want some advice / support in the auction process and moving to the Sunshine Coast