A Guide To Auctions On The Central Coast

A Guide To Auctions On The Central Coast: 

If you’re gearing up to go to auction for a property, you’ve come to the right place. At Sharp Property Buyers, we understand that the auction process can be intimidating and nerve-racking but fear not! Our go-to guide is here to ensure you have a smooth (and hopefully successful) auction experience.

How Auctions Work… A Quick Overview: 

1. Reserve Price: The vendor sets a minimum acceptable price for the property. If bidding reaches or exceeds this price, the property will be sold to the highest bidder.
2. Immediate Result: Contracts are signed on the spot if the highest bid meets or exceeds the reserve price. Be prepared to pay the deposit right after the auction.
3. Passed In: If the reserve isn’t reached, the property is passed in and negotiations with the highest bidder (or bidders) follows.
4. No Cooling-Off Period: Unlike regular sales, there’s no cooling-off period post-auction. Due diligence, inspections, and financial arrangements must all be done before the auction day.

Advantages of Auctions:

1. Transparent Process: Auctions offer a level playing field with a transparent sales process.
2. Benchmarking: Auctions allow buyers to benchmark their offers with those of other interested parties. The public nature of the bidding provides insight into the market’s assessment of the property’s value.
3. Assessing Competition: On auction day, buyers have the opportunity to assess the competition firsthand. Observing other bidders allows potential buyers to gauge the level of interest and make informed decisions during the bidding process.
4. Immediate Result: Successful bidding means an immediate, confident purchase.
5. Confidence in Purchase: When you win the auction, you secure the property. There is no second-guessing or lengthy negotiation process; your successful bid ensures your purchase.

Preparing for Auction Success:

To position yourself for success, we recommend completing the following steps prior to auction:

1. Inspect Thoroughly: Conduct all inspections, such as pest and building.
2. Secure Financial Pre-Approval: Set a clear budget and secure financial pre-approval.
3. Legal Advice: Have a solicitor or conveyancer review the auction contract for any concerns.
4. Know Likely Selling Price: Conduct a comparable market analysis for pricing insights. Websites like Realestate.com.au and Core Logic are great for this.
5. Understand The Property’s Demand: Gain insights into the property’s expected demand for a better bidding strategy.
6. Attend Other Auctions: Gain experience by attending other auctions in the area before your bidding day.
7. Professional Help: Consider hiring a buyers agent like Sharp Property Buyers for guidance and representation on auction day. You can explore our Auction Only Service here. Our specialised Auction Only Service provides expert guidance tailored for the auction environment, ensuring you navigate the process with confidence.
8. Registration: This can often take place either before or on the big day.

On The Day: 

Take a deep breath, trust the groundwork laid in the weeks leading up to this point and step confidently into the auction arena. Remember the following for the big day:

1. Arrive Early: Get familiar with the surroundings.
2. Registration: Complete the auction registration process, if you haven’t already.
3. Budget Check: Confirm your budget and maximum bid.
4. Auctioneer’s Remarks and Reactions: Pay attention to any important announcements and be attentive to the auctioneer’s cues, gestures, and interactions throughout.
5. Confidence and Flexibility: Stay confident and composed. Observe the body language of other bidders and don’t let emotions drive your bidding decisions; stick to your pre-determined strategy. Stay flexible and be ready to adjust your bidding strategy in real-time if the auction dynamics change.

With our Auction Only Service, you can have a dedicated team supporting you and representing you throughout the entire auction process, offering expertise and guidance to enhance your chances of success.

Making a Pre-Auction Offer:

Depending on the market conditions, making a pre-auction offer can be a savvy and successful move, providing you with a competitive edge. Here are 8 key considerations to keep in mind when putting forward a pre-auction offer.

1. Present a signed contract.
2. Offer a fair price.
3. Put the offer in writing.
4. Act early.
5. Keep conditions simple.
6. Set a time limit for the offer.
7. Show finance approval.
8. Consider a larger deposit.

Conclusion:

Securing a property through auction can often be stressful and difficult task to do alone. It requires in-depth knowledge of the property market and the auction process, as well as the experience to make informed split-second decisions. At Sharp Property Buyers, we’re dedicated to ensuring your real estate journey is stress-free and successful. Our team has extensive experience and in-depth knowledge of auction strategies and the Central Coast property market. We know how to dominate the auction floor on your behalf, ensuring you have the best chance of securing your dream property on the Central Coast. So, why stress about buying property when you can have a dedicated and trusted Central Coast buyers agent team by your side. Contact us today and find out why we are the most highly rated buyers agent team on the Central Coast.

Disclaimer: The information provided is for general guidance only and should not be considered as legal or financial advice. Consult professionals for personalised advice related to your specific situation.