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Getting ready to buy at auction

By Lachelle Ferguson

Buying a home at auction is an exciting time – the crowd and competitive atmosphere means it’s easy to get caught up in the passionate bidding. If you’re looking to buy your dream home, it’s important to make sure you’re prepared and know your limits. I can help you maximise your opportunities at auction. Here are some of my top tips.

Be ready to buy with a written, formal pre-approval

Not all pre-approvals are equal. For complete confidence at auction, I’ll arrange a formal pre-approval. Based on a full assessment of your financial situation, a formal pre-approval is a lender approved amount to borrow. This means you know exactly what your limit is and puts you in a stronger position to bid or negotiate.

Know your highest offer

Choosing the right lender and product can mean the difference between getting the house of your dreams and missing out. I can do the legwork to keep you streets ahead of other buyers by working with a range of lenders to work out your maximum borrowing capacity. Your maximum borrowing capacity means the highest amount you can borrow –essentially, your limit when bidding at auction.

Can you keep bidding?

Knowing your maximum bid is just one part of being prepared. Knowing how much each extra bid will cost you in weekly repayments can help you make the tough decision of whether to keep bidding or not.

Get shopping

Once you have your finances locked in, it’s time for the fun stuff to start! Visit lots of open-for-inspections and auctions to familiarise yourself with the process and recognise value when you see it. Once you find ‘The One’, don’t forget to obtain a contract of sale and conditions of sale from the agent. Your solicitor should check it over if you have any concerns. You’ll have to register to bid and complete your building and pest inspections before the auction.

If you’re successful on the day you’ll be expected to pay the deposit (usually 5-10%) so talk to me about getting your finances ready so you can buy with confidence.

For more information please contact Ray White Real Estate Narraweena 9984 7100 or Ray White Narrabeen 9970 6777

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