• Arrange home loan pre-approval

When the hammer falls at auction, the highest bidder is legally bound to buy the property. That means you need to be very confident about getting a loan to finance your purchase.

The best way to do this is by having a loan pre-approval in place prior to auction day.

Having your loan pre-approved also helps you decide a buying budget. This matters as sticking to your budget will ensure you don’t make a bid you can’t afford.

• Research the property

Thoroughly research the property and its location. Visit the home at different times of the day and week, and organise a pre-purchase pest and building inspection. Yes, this will be an additional cost but it’s a great investment that will reveal if the property has any problems before you start bidding.

Have the contract of sale reviewed by your solicitor or conveyancer. There won’t be an opportunity to adjust the contract on auction day.

• Plan your purchase deposit

If you are the highest bidder, you’ll need to pay a deposit – usually 10%, following the auction.

Ask the selling agent for details of how much deposit you’ll need and what form it should take (for example, a bank cheque).

• Attend a few other auctions

Homes can be sold at auction in a matter of minutes! And while it’s exciting, it can also be a high-pressure environment.

Attending a few auctions of other homes will give you a good idea of what to expect when the place you’re interested in goes under the hammer.

During the auction

• Be prepared

Take with you everything you are likely to need including personal ID. Arrive early to allow yourself time to get a bidding number, and decide where you’d like to stand.

• Be confident but know your limit

You may want to devise a bidding strategy beforehand, but auctions can dish up surprises so don’t feel you have to stick to a plan.

The main point is to be assertive and participate actively in the bidding. Always stick to your budget and don’t overbid.

If you’re not confident about staying within your budget, bring along a friend who can do the bidding for you up to your set limit.  

After the auction

• Finalise the sale

If you’re the highest bidder it’s time to celebrate! But first, you’ll need to sort some formalities. Sign the contract of sale, and pay the deposit. The home is pretty much yours now!

• Talk to your lender

Be sure to contact your lender as soon as possible after the auction so that you can move from pre-approval to a formally approved home loan.  

Find out more

To learn more about organising your new home loan, call us on 1300 13 22 77, Mon-Fri 8am-8pm (AEST/AEDT) or 8am-3pm on Saturdays. Or pop in and speak to the friendly team at any of our stores.