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Want to win at auction time?

The increase in demand for housing has resulted in more competition at auction time. Thus, here
are some quick tips on how to win an auction.

If you’ve managed to find the right loan and are now looking
at buying property, chances are that you will be going to
auction.
The increase in demand for housing has resulted in more
home loans and more competition at auction time, which is
driving prices up and making sellers very happy.
For instance, the success rate of auctions in the week beginning
June 29 in Sydney was 83.9 per cent, according to
a report from CoreLogic RP Data.
Here are some quick tips for putting more power into your
hands as the buyer:

Investigate
Once you’ve decided on a house, look at the recent property
sales in the area surrounding it to get an idea of its value.
The best way to learn how auctions work is to actually attend
them, regardless of whether you’re interested in the
house. By simply blending into the background of people
and spectating, you’ll be killing two birds with one deadly
stone – learning how auctions work at the same time as
getting an idea of house prices in the area.

Appearance
If you’re going to an auction, it’s a good idea to dig out your
fine clothing from the depths of your wardrobe. While it may
be untouched since your uncle’s third wedding, the most
important thing is that it still fits – you can easily brush the
dust off.
According to yourmortgage.com.au, by dressing to impress
you can project a professional image and an unlimited
budget, ultimately intimidating your competition. Buyer’s
agent Frank Valentric, speaking to Your Mortgage, suggested
hiring an expensive rental car, which you can park prominently
in front and use to lean on before the auction commences.

Bidding
Continuing on with your confident persona, you want to bid
in a loud and clear voice – think Vin Diesel or Beyoncé, for
example.
For each bid you make, aim to go well above the current
amount. The important thing is to not get carried away and
end up spending more than you can afford, as there is no
cooling off period in auctions. Provided you get the voice
right though, you should be OK, because who is going to
bid against Vin Diesel or Beyoncé?

Finance
If the gavel drops and you have the leading bid, you’d better
have your finances in order as winning an auction is a
legally binding contract.
Talk to us about variable home loans and fixed home loans,
and what would suit you best.

Written by

Stephen Bonfield, the Managing Director, previously worked for one of Australia’s major home loan companies as an independent mortgage broker. Steve used this experience to set up his own mortgage broking company - a company that places customer needs at the forefront.

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