Top tips for auctions this January

There are many channels an individual can go through to purchase property on the Gold Coast. Traditional methods such as using an agent or browsing property listings are one way, but where do people find the real bargains?

For those who want the best deals, hidden gems can be found in the auction house. Buying under the hammer at auction is popular for investors, but it's crucial for even the most seasoned bidder do their homework to ensure they avoid the common pitfalls and are aware of the ever-changing rules and conditions. 

January is an exciting time for the Coast where auctions are concerned, so we've compiled a few tips to ensure everything goes as smoothly as possible, before, during and after the hammer comes down. 

Do your homework before bidding

Even though you're planning to go to auction, it still pays to check your property listings, and here's why.

Properties that are sold at auction carry a reserve price – the minimum price that the person selling the property will accept. Although the agent can't disclose the reserve price, you can still use recent property sales in the area to estimate the amount the owner would be willing sell for. While the figures may only be a guess, gaining an overview of the auction market by visiting other auctions beforehand can help. 

Visit plenty of auctions to avoid panic

Attending as many auctions as possible will help to familiarise yourself with the bidding process, along with any special rules or regulations to take note of. On a tactical side, this a great opportunity to scout winning bidders for their successful strategies. As mentioned above, visiting a number of different auctions will also offer realistic insights into the prices properties are advertised for and the prices they then sell for – giving you greater control over your own bidding limits on the day. 

Use inspection to detect imperfection

Property inspection is an essential part of the buying process. Just as you wouldn't purchase a car without test driving it first, visiting a property several times ensures that you won't be buying a disappointment instead of a dream home.

Take the time to get to know the agent representing the property as they will be familiar with the local area and provide valuable insight into the competition expected at auction and property's market value. If you are truly committed to a particular property and are considering a strong, unbeatable bid, you should get it inspected by a licensed building inspector and architect before the auction itself.

Be bold but keep to your limits

Bid with confidence and make sure that the number is realistic. This shows the owners and the auction competition that your interest in the property is genuine and serious. Strong bids, quick counter-bids and consistent bidding can give you a psychological edge over the competition.

On the other hand, know your limit before going into the auction room – and stick to it.

Once the bidding has reached your limit, stop bidding. If you were not successful in your bids, accept it and take comfort that there will always be other properties on the market. If you were successful, then all you will need to do is sign the sale contract and pay the deposit before celebrating. 

January is a month full of auction opportunities for Gold Coast property, so if you'd like to discover your own jewel of the Coast, get in touch with the expert realtors at Ray White Surfers Paradise. We can point you in the right direction of the best investment properties, and have years of experience dealing with auctions. To learn more, give our team a call today.