Auctions are increasing in volume and more investors are likely to find themselves bidding to buy good properties.
Here are some tips for property investors when buying and selling at auction.
Tips for buying an investment property at auction:
- Research the property, area, market (what is sold & for sale)
- Attend auctions in the area
- Have a friend or professional bid if not confident
- Make sure you have your deposit cheque
- Ensure your finance is approved
- Set a self imposed bidding limit
- Phone bidding can be a good strategy
- Stand in clear sight of the auctioneer
- Have your solicitor/conveyancer inspect contract thoroughly prior to the auction
- Conduct any building or pest inspections prior to auction if required depending on the property
- Get an independent valuation if unsure on price to pay
- Have an agent you know give you a price indication
- View the property at different times of the day to see it in different light and check out the location
- Take a tape measure for any final measurements prior to the auction
- Take a bottle of water (Bidding is thirsty work)
- Get into the bidding early
- Bid big and bold is one strategy that often comes up trumps
- Bid in odd increments (This can sometimes slow things down)
- Remain calm and confident
- Agree to any special terms prior to the auction
Tips for selling an investment property at auction:
- Presentation is key for a good sale at auction
- Vacate tenants if necessary for inspections and presentation
- Styling the property if vacant can be very effective
- Invest in a quality marketing campaign
- Hire a good auction agent
- Ensure you are also getting a good auctioneer
- Keep an eye on the market inspect other auctions and properties in your area
- Get all the maintenance done prior to coming onto the market
- Street appeal is really important as well as the gardens
- Professionally clean the property inside and out
- Have your agent open the property up and present it well
- Make sure the contracts are correct
- Have all terms with bidders agreed to prior to auction day
- Attend your auction sale to be able to see the bidding, the interest and make any final decisions during the auction
As more properties go to auction it will pay to be prepared when selling and buying your next investment property.
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