Your Ultimate Guide to Buying at Auction
Buying a property at auction could help you secure a desirable property at a price you’re prepared to pay. Before bidding at auction, however, two important things to do are get finance-ready and be insurance-ready. Here are our tips to help you prepare to buy a property at auction.
Get finance-ready
Before stepping into the auction room, it’s important to financially prepare by setting a clear budget, arranging mortgage pre- approval, and deciding on your bidding strategy. Taking these three steps will help you bid with confidence and make informed decisions during the auction process.
Set a budget
Whether you’re buying a first home, upsizing or downsizing, or growing a property portfolio, setting a budget is an essential first step. Assess your income, expenses and savings to determine how much you can afford and how much you may be able to borrow.
Get mortgage pre-approval
Property sales by auction are unconditional, so it’s essential you get mortgage pre-approval from a lender before bidding at auction. Work with a mortgage adviser at Mortgage Express to navigate the pre-approval process smoothly.
Bid strategically
Whether you start with a high bid to knock out the low bidders, or make smaller, incremental bids to gauge the competition, determine your maximum bid and then stick to it. Attending a few auctions as an observer before bidding will help you understand the auction process.
Be insurance-ready
Understanding what to look for in insurance cover, shopping around for the best deals, and getting advice from insurance specialists, will help you safeguard your new home effectively.
What to look for in insurance cover
When getting home Insurance quotes, check that the insurance policy covers potential risks associated with home ownership, things like structural damage, theft and natural disasters. Look for comprehensive coverage that will protect your investment so you’re not left financially worse off should something happen to your new property.
Shop around and compare
Different insurance providers offer different levels of coverage and premiums, so take the time to compare policies from various providers to find the best deal.
Get insurance advice
Work with an insurance specialist, such as those at Astute Insurances, to get insurance advice specific to your situation. An insurance adviser can also explain the nuances of different policies and ensure you get the right level of cover to best fit your needs.
Preparing to buy at auction
Get auction-ready with the help of a mortgage adviser from Mortgage Express. Get pre-approved finance and expert budgeting advice to help you make informed decisions about your next property purchase.
Contact Mortgage Express today to connect with a mortgage adviser near you and get ready to bid at auction. The Harcourt’s Otago team look forward to welcoming you at one of our auctions during our Auction Advantage week – 21st until the 25th of October. Get in touch with one of the team to find out more.
