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That guy has got his car in your garage! What are you going to do about it? - Part 1

According to the Real Estate Institute of New Zealand September's report, nationally there were 1,072 dwellings sold by auction in September representing 18.1% of all sales.

Knowing your way around auctions and how to make the most of them means that you can secure that property you have your eyes on.

Award-winning auctioneer Mark Sumich is the person behind the phrase "That guy has got his car in your garage, so what are you going to do about it?". He is of the view that auctions are more sport than science and that people should expect the unexpected.

But here are a few things you can do to help you in this process before auction day:

  1. Do your homework, fast. It is important to do your due diligence, including building inspection, council reports, finance and lawyer’s approval. And with auctions, the quicker you do your homework, the better. It could mean that you can put a pre-auction offer in and push out other people interested in the property as they are not ready to bid. It will also mean that you are ready to bid if the auction is brought forward.
  2. Know what the house is worth. You’ll find that you’ll have to look at a number of properties (and check how much they are sold for) before you can get a good grasp of what the property you are interested in could sell for. There no easy way to get around this process, but knowing the market will help you bid confidently.
  3. View other auctions before bidding for real. Blink and you’ll miss it – auctions can be over in less than 7 minutes. To prepare yourself before bidding for the property you are after, view other auctions first. It will help you understand the process and get to know the jargon auctioneers use. Find out who the auctioneer will be at the auction you are looking to bid on and see some of his or her auctions. Some auctioneers have their past auctions posted on YouTube.
  4. Know your competition. If you’ve been at the open home for the same property more than once, chances are you’ve run into some of the same people. But a good way to gauge how many people are seriously interested, is asking the real estate agent how many building inspections have been done and how many registered bidders there are.
These things will help you prepare before the auction, so you are in a good position come auction day. We will give you a few tips on bidding at auctions in our next post.


 

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