As we all know, auction is one of the main ways to buy houses in Australia. As buyers continue to raise prices at the scene, the transaction price is getting higher and higher, and the regional median price will also appear to rise in the possibility of a high boat.
Buyers who have taken part in the auction may have experienced a tense atmosphere and a feeling of unease throughout the process. In the view of the senior auctioneer and consultant Alec Brown, what is the most important thing to do at the auction site for the buyers who are sure to win it?
Define your bargaining space
This is the biggest premise of the auction! Before "going to the battlefield," buyers must have a clear understanding of their ability to pay, get pre-approvals for loans through lenders, and do market-price research on the properties they see. At the same time, buyers also need to clarify their bargaining space.
Imagine if your dream home, bidder for the next 10 to 15 years is looking for the house, would you be willing and able to buy it for another $5, 000?
A clear understanding of your affordable, easy-to-use budget line is critical. Because sometimes this budget is put into the loan, maybe an extra A $10 a week.
Understand the bottom line of the selle
Buyers should know that before the auction the seller prepared the purchase contract is very clear. Ready buyers often make their own demands on contracts and wish to add modified terms to maximize their interests.
Specifically, the most common requirement for buyers is to expect an extension of payment time; a specific renovation or repair of a house; and an adjustment of the down payment from 10 percent to 5 percent. Although the details of the changes, but for the buyer has a considerable impact.
How to gain psychological advantage?
To buy a favorite property, be sure to stand where the auctioneer and other bidders can see it. The study found that buyers in a favorable position at auction can give them a self-confident psychological hint.
Therefore, the buyer is best placed where the auctioneer can see every bid, so that you can make a counter-offer, keep the pace of your bid, and avoid being ignored by the auctioneer.
How can buyers "crush the masses"?
The first offer gives a "sincere" price to attract the attention of auctioneers and on-site bidders.
The data show that the winning rate will be higher from the start when it comes to a higher bid range than other buyers. Psychologically and tactically, this can also defeat many competitors.
Buyers can also significantly increase their bids to "eliminate" some of the bidders, but be careful that if the auctioneer thinks the auction is too fast, it will reject your bid.
In short, do not be discouraged throughout the process. Auction is one of the most transparent ways of buying a house. You can know exactly what price people are willing to offer and who is interested in it. This process will not be unbalanced or unfair.
