{"id":5235,"date":"2015-07-30T08:00:48","date_gmt":"2015-07-29T22:00:48","guid":{"rendered":"http:\/\/realestatetalk.com.au\/?p=5235"},"modified":"2015-07-30T08:00:48","modified_gmt":"2015-07-29T22:00:48","slug":"6-tips-for-buying-at-auction-john-mcgrath","status":"publish","type":"post","link":"https:\/\/channels.realty.com.au\/realtytalk\/6-tips-for-buying-at-auction-john-mcgrath\/","title":{"rendered":"6 tips for buying at auction &#8211; John McGrath"},"content":{"rendered":"<p><strong>An auction can be\u00a0unnerving\u00a0for even the most experienced buyers.<\/strong><br \/>\nIn his recent column in Switzer, John McGrath provided 6 helpful tips to increase the chance of a successful purchase come auction time.<\/p>\n<h4>Here&#8217;s what he had to say:<\/h4>\n<p>Many more homeowners in Sydney are choosing to sell via auction in today\u2019s booming market \u2013 and why wouldn\u2019t they with clearance rates consistently above 80% throughout much of 2015.<br \/>\n<img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"alignright\" alt=\"John Mcgrath\" src=\"https:\/\/i0.wp.com\/puassets.s3.amazonaws.com\/wp-content\/uploads\/2015\/07\/JohnMcgrath-e1436853066209-300x234.jpg?resize=216%2C169\" width=\"216\" height=\"169\" \/><br \/>\nSo as a buyer, you need to be ready to buy at auction \u2013 especially if you\u2019re in Sydney.<br \/>\nUnfortunately many people struggle with this, with a St George Bank survey of 1,000 prospective buyers showing:<\/p>\n<ul>\n<li>62% had no strategy to win on auction day<\/li>\n<li>48% felt they were not as prepared as they could have been<\/li>\n<li>46% said the most difficult buying process was bidding at auction or making offers, followed by assessing good value (44%)<\/li>\n<li>Buying a property is a huge financial decision and once you add in the inevitable stress and excitement of buying at auction, the odds are you\u2019ll make mistakes if you\u2019re not prepared.<\/li>\n<\/ul>\n<p>You\u2019ll pay too much or even worse, you\u2019ll lose your nerve and walk away knowing you could have stretched a little further and bought it.<br \/>\nAnd now you\u2019re back to attending opens every Saturday to find a suitable property.<br \/>\nHere are my tips for addressing the main issues highlighted by St George\u2019s research.<\/p>\n<h4>Preparing for auction day<\/h4>\n<p>The most critical thing you need to do is establish your walk-away price.<br \/>\nThis figure is not just what the bank will lend you plus your savings.<br \/>\nYou need to ask yourself, what else am I willing to do if I need to stretch my budget to secure this home?<br \/>\nFor example, Could mum and dad lend you $5,000?<br \/>\nWhat if you scrapped or delayed your next holiday?<br \/>\nCould you buy a less expensive car?<br \/>\nWhatever you do, don\u2019t push your boundaries so hard that you end up in financial difficulty.<br \/>\nBut do consider your priorities and ask yourself, will I be happy walking away from this property if an extra few thousand could have bought it?<br \/>\nGet comfortable with a number and stick to it.<\/p>\n<h4>Strategy to win<\/h4>\n<ul>\n<li>Make a low bid to start the auction;<\/li>\n<li>Once others begin to bid, just sit tight, size up your competition and watch how the auction unfolds;<\/li>\n<li>Project confidence and create the impression you will continue to bid until you own the home, no matter what. This is about psyching out the other bidders;<\/li>\n<li>Make your bids fast and assertive. Agonising over your next bid is a sign of weakness;<\/li>\n<li>Call out your offer in full (i.e. say \u201c$350,000\u201d instead of the increments, i.e \u201c$5,000\u201d); and<\/li>\n<li>If it\u2019s going to pass in, make sure you are the highest bidder, as this usually gives you first right to negotiate (whether this is a legal right or courtesy varies between states).<\/li>\n<\/ul>\n<h4>Fear of \u2018overpaying\u2019<\/h4>\n<p>In a rising market, \u2018overpaying\u2019 today often ends up being \u2018good value\u2019 tomorrow, especially when stock is low.<br \/>\nIn Sydney, people who paid 10% above what they considered market value in 2013 are laughing all the way to the bank, because the market is now up more than 30% on 2013 prices.<br \/>\nEven in markets that aren\u2019t booming, if you\u2019re in it for the long term and you really want that particular property, don\u2019t be afraid to overpay a little.<br \/>\nIn 10 years\u2019 time, the extra $20,000 you paid on auction day simply won\u2019t matter.<\/p>\n<h4>Final word on buying at auction<\/h4>\n<p>In my experience, fate can play a hand in you finding the right home and you should go with it.<br \/>\nCertainly, create a plan to bid and win but also accept that if it\u2019s not meant to be, it\u2019s not meant to be.<br \/>\nIf you really don\u2019t think you can handle the stress of bidding on the day, hire a buyers\u2019 agent or ask a confident friend or colleague to do it for you.<br \/>\nJust check with the agent as to what you need to do to officially to authorise your nominated person to act on your behalf.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>An auction can be\u00a0unnerving\u00a0for even the most experienced buyers. In his recent column in Switzer, John McGrath provided 6 helpful tips to increase the chance of a successful purchase come auction time. Here&#8217;s what he had to say: Many more homeowners in Sydney are choosing&#8230;<\/p>\n","protected":false},"author":176692471,"featured_media":2295,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[13],"tags":[],"class_list":["post-5235","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest-story"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>6 tips for buying at auction - John McGrath - Realty Talk<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/channels.realty.com.au\/realtytalk\/6-tips-for-buying-at-auction-john-mcgrath\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"6 tips for buying at auction - John McGrath - Realty Talk\" \/>\n<meta property=\"og:description\" content=\"An auction can be\u00a0unnerving\u00a0for even the most experienced buyers. 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