2 Important Things to do Before Buying at Auction
Buying a home at auction can be an exciting experience, with the potential to secure a desirable property at a price you’re prepared to pay. Two important factors to consider before bidding at an auction are getting finance-ready and being insurance-ready. With Harcourts’ Blue Friday taking place on Friday, 13 September 2024, you’ll have a unique opportunity to secure your dream home at Australia’s biggest single day auction event. Here are our tips to help you prepare to buy a property at auction.
Get finance-ready
Before entering the auction, set a clear budget, get mortgage pre-approval, and finalize your bidding strategy. Taking these steps will help you bid with confidence and make informed decisions during the auction process.
- Set a budget. Whether you’re buying a first home, upsizing or downsizing, or growing a property portfolio, setting a budget is an essential first step to working out how much you can afford and how much you may be able to borrow. Work with a finance consultant to assess your income, expenses and savings to determine how much you can afford to spend on a property.
- Get mortgage pre-approval. Property sales by auction are unconditional, so it’s essential home buyers get finance pre-approval from a lender before bidding at auction. Not only will pre-approval ensure you bid with confidence, but it also helps you set a firm budget based on your lender’s assessment. Work with a mortgage broker from Lending Connections to navigate the pre-approval process smoothly.
- Bid strategically. Having a bidding strategy is essential. Whether you start with a high bid to knock out the low bidders, or make smaller, incremental bids to gauge the competition, determine your maximum bid and then stick to it. Be aware of auction tactics and avoid getting caught up in the heat of the moment. It’s a good idea to attend a few auctions as an observer before bidding to help you understand the auction process
Be insurance-ready
Having the right insurance cover is as important as getting your finances in order. The right level and type of insurance means your investment is protected against unforeseen events as soon as you win the auction. Understanding what to look for in insurance cover, shopping around for the best deals, and getting advice from insurance specialists, will help you safeguard your new home effectively.
- What to look for in insurance cover. When getting home insurance quotes, check that the insurance policy covers potential risks associated with home ownership, things like structural damage, theft and natural disasters. Look for comprehensive coverage that will protect your investment so you’re not left financially worse off should something happen to your new property.
- Shop around and compare. Different insurers offer different levels of coverage and premiums, so take the time to compare policies from various providers to find the best deal.
- Get insurance advice. Work with an insurance specialist, such as those at Astute Insurances, to get insurance advice specific to your situation. An insurance broker can also explain the nuances of different policies and ensure you get the right cover that best fits your needs.
Harcourts’ Blue Friday Auction Event
Don’t miss Harcourts’ Blue Friday auction event taking place on Friday, 13th September 2024. This “Olympics of Auctioneering” event promises an unparalleled opportunity to find your dream home. Last year’s event saw over $160 million in property sales and raised over $90,000 for Beyond Blue, supporting mental health initiatives across Australia.
Blue Friday will feature a wide array of properties from metropolitan mansions to regional treasures. Showcasing some of the nation’s best auctioneering talent. Studies have shown that sellers who went to auction in June this year made an average of 10.9% more than the highest prior offer, proving just how effective auctions can be. Mark your calendar so you don’t miss out!
Prepare to buy at auction
Get auction-ready with the help of a mortgage broker from Lending Connections. Get pre-approved finance and expert budgeting advice to help you make informed decisions about your next property purchase. Contact Lending Connections today and get ready to bid confidently at Harcourts’ Blue Friday auction event.