In this week’s episode of the Property Planner, Buyer and Professor Podcast, the team delve into how to prepare for auction so you can put your best foot forward, as Dave, Cate and Pete take you through:
- Inspecting and appraising – beware of underquoting! Don’t get unravelled by properties selling above the price guide given by the agent. The trio share how to work out a more accurate understanding of value.
- Budget setting – home buyers v investors. There are key differences in the budget setting process for home buyers and investors to be aware of when setting a walkaway price. In the end, it should all come down to the numbers and factoring in ‘emotional premiums’ where appropriate.
- Purchase price shouldn’t be determined by borrowing capacity. Many purchasers come undone with buyer’s remorse if they’ve allowed their upper limit to be dictated by borrowing capacity and haven’t appropriately budgeted. The trio share how to work out your purchase limit so that you don’t blow the budget and lose sleep!
- When can you find out the reserve? The Planner, Buyer and Professor share the top tips for how to approach an agent to get the insider intel (that they’re not required to give you!).
- Auction twists. Pre-auction offers, probate, family law, off the plan and different schedule auctions – find out the twists that can impact how the auction is conducted.
- When to kick-off an auction with a low-ball offer. The trio share the psychology behind low-ball offers and when to use them.
- Due diligence. Having the contract reviewed by your solicitor and conducting a building and pest inspection are critical steps to ensuring that you make property decisions that you don’t later regret. Buyer beware!
- Finalising contract terms. How should you pay the deposit to the agent if you are successful and what is the settlement date?
- And of course, our ‘gold nuggets’!
Cate Bakos – The Property Buyer’s Golden nugget: when you’re doing auction prep, get all the information you possibly can, including understanding your competition. Find out who’s who in the zoo, by chatting to the agent the day before or two days before the auction. Find out when they are meeting with the vendor prior to the auction, put it in your diary and give them a call afterwards because that’s when the info will be hot off the press. How many bidders do you think will be there? Are there any advocates? How many building inspections have you had and how many contracts have gone out? That will give you a good idea of the strength of the competition.
Peter Koulizos – The Property Professor’s Golden nugget: do all your research, work out what the property is worth, but if you’re going to pay an extra $1,000 think about all the extra time you’re going to spend looking for the next property and weigh it up. In the big scheme of things, if you’re paying hundreds of thousands of dollars to purchase a property, what is an extra $5,000?