Buyers do not have a particular procedure to follow unlike sellers, but there are several things that buyers should keep in mind when entering into a property auction, such as:
- Buyers must ensure there is enough money to make a deposit if the buyer is successful in a bid. A deposit of 10% of the sale price is expected on the day of the property auction. The other 90% would need to be paid after the completion of sale, which is around 10 to 12 weeks. Payment can be made by cheque.
- Buyers must secure a loan before the property auction date. Take into consideration the time it takes for a loan to be approved, because backing out for not getting the loan in time could be costly!
- Looking at similar properties in the area and getting their price range prior to the property auction. This would give buyers a reasonable price estimate for the Property, so buyers won’t feel like they overpaid.
Being careful before making a bid. It’s easy for buyers to get caught up in the bidding frenzy and overbid. Buyers must set a reasonable price, one that’s affordable and stick to it. And if there are many buyers vying for the same property, hold out until the bidding slows down. This way, the buyers won’t be constantly outbidding each other.