“Going, going…. gone!” Selling property under the hammer remains popular in Melbourne. And, truth be known, selling at auction can have great results for property owners.
If you’re on the other side of the equation and thinking about purchasing property at auction, you need to be savvy about what you’re doing. Auctions are high energy events and it’s easy to get caught up in the fever of the moment and make rash decisions. Or, if you’re a first-time bidder, it’s easy to get overwhelmed and miss out on the chance of a lifetime!
Dealing with commercial property law is no job for a novice. And as the old cliche goes, ‘forewarned is forearmed’. As your trusted team of Melbourne property lawyers, we’ve taken the time to jot down these few points that’ll help you prepare for auction morning:
1. Do Your Research
Before you put your money on the line, it’s important to do your groundwork; spend time looking at property values online; look through similar homes; find out what other homes in the area are selling for. Ask questions. Get answers.
2. Talk to Your Lawyer
Whether you’re purchasing domestic or commercial Melbourne property lawyers can help you avoid some of the common pitfalls. Dealing with commercial property law can be confusing (especially for the first-time buyer), and the experience and trained eye of a lawyer will pick up any areas in the contract which may be unclear or unlawful. Your lawyer can help negotiate the best terms and conditions of sale on your behalf, and advise you of any tax consequences which may result from the purchase.
3. Have your Money Ready
Be sure your money is good before you bid. If your purchase involves borrowed finance, you need to contact your bank or financial institution and confirm that you can borrow the amount you need.
4. Contact the Agent
Many people don’t realize that they can contact the agent and discuss the deposit amount and settlement terms before the auction. Find out as much as you can about the property from the agent and ask for comparable sales in the area.
5. Check and Double-Check
Ensuring that the property is structurally sound and free of pests is important. Termites are a problem in areas right across Victoria, so it’s wise to arrange a pest and building inspection before auction day. There is no cooling-off period when you purchase at auction, so you need to be certain that the property is sound before you bid.
6. Get some Experience
Never been to an auction before? Get yourself some first-hand experience! Visit property auctions and take note of the strategies auctioneers use to encourage buyers to bid. Learn the lingo and become familiar with the terms, procedure and atmosphere of property auctions.
7. Don’t Be Afraid
When the time comes, don’t be afraid to bid. We understand that auctions can be daunting, but being too scared to raise your hand might mean that you miss out on the opportunity of a lifetime!
8. Don’t let your Secrets Slip
You don’t need to tell the selling agent how much you’ve got to spend. Play your cards close to your chest – remember, the auctioneer is a salesman out to get the price as high as he/she can, so play it calm and stay cool.
9. Confidence is Key
Don’t mince your words: call your bids loudly and in full amounts. For example, say “$315,000” rather than “15,000” to avoid any confusion. The old saying ‘fake it ‘till you make it’ is never important: put on your confident face, even if you’re a bundle of nerves!
10. Know your Limit
It’s important to set yourself a budget and stick to it. Auctions can be very intense, and if you don’t know your limits it’s easy to overspend in the heat of the moment. Try and remain emotionally detached from the property – there are more properties out there if this one sells too high.
We understand that buying property can be a stressful and emotional journey, and the team at PB Law are here to help you every step of the way. With years of experience in dealing with commercial property law, our team of Melbourne property lawyers can help you get the best out of your new investment. Call us today on (03) 9692 9888 and let’s get started.