In Western Australia, auctions are growing in popularity as an avenue for homebuyers to snag their dream home and get the best bang for their buck.
According to Bourkes Principal and Licensee Alan Bourke, auctions can be an easier option for buyers because they see what they are bidding against.
“I believe it’s the safest, most transparent way for a buyer to purchase a home,” he said.
“However, while buyers have multiple opportunities to bid before the hammer goes down, they tend to underestimate the competition.”
Echoing this sentiment, Ray White Dalkeith Claremont Senior Sales Executive Yvonne Furner said buyers who had not attended an auction previously, often didn’t understand what was involved.
“Homebuyers new to the process think they will come in and there will be one or two bidders,” she said. “But those with auction experience are likely to be more prepared, for example, asking the auctioneer and the agent how many people have registered.
“A lot of the time the inexperienced buyers will underestimate the experience.”
Mr Bourke urged people new to the auction process to rely on the agent to provide the information and strategy that would result in a successful bid at a good price.
“Buyers must be 100 per cent certain about funding,” he said. “A pre-approval letter is too risky.
“They must be assured the home will pass valuation too – up to a figure.”
Mr Bourke said on auction day bidders needed to ensure they knew their final price and how far they could stretch their budget, if need be.
“Ensure you have a deposit ready to pay on the day – electronic transfers often have daily limits,” he said.
“You need to also ensure you fully understand the key terms and you have stated your intentions early in bidding, and bid fast again if another bid comes after yours.”
Both agents agreed that if a buyer was serious about a property, it was their responsibility to do due diligence on the home.
“If you want to know anything about the property, you need to undertake your own building, timber, pest, pool and electrical inspections because on auction day you can’t do it – you can’t put any conditions on the offer,” Ms Furner said.
“Have a strategy in place beforehand, I always encourage potential buyers to have a meeting or conversation with the auctioneer prior to the auction to discuss the potential different case scenarios.
“Be confident – auctions is one of the best methods of sale for both the buyer and the seller.”