If my 20 years in real estate has taught me anything, it’s that there’s a formula for everything.

The difference between a good agent and a great agent is not their age, but how well they’ve mastered these formulas.

As someone who has weathered the Global Financial Crisis, Sars, and now Covid-19, I’ve come to know these formulas like the back of my hand.

So what’s my formula for success when it comes to property auctions? 

Pre-approval

Knowing what you can spend is crucial in determining your bidding power and brings you one step closer (financially) to actually buying your dream home. 

What you might not have realised, however, is that it also makes you a more attractive buyer.

Sellers are more likely to take you seriously if you can demonstrate that you have taken the financial steps towards homeownership and that you realistically have the funds to afford their property. 

Know your limits

It’s all too easy to get carried away in the excitement of an auction and place a bid that isn’t exactly in your best interest.

Set yourself a limit and be sure to stick with that, otherwise, send someone to bid on your behalf.

Be deposit ready 

The reality is that you won’t win an auction without a deposit, which is typically 10% of the full purchase amount.

Banks aren’t open over the weekend, which is when most auctions take place, so you will need to take your deposit with you as either a cheque or electronic bank transfer.

The most important part of the equation is you

Ultimately, your success at auction comes down to knowing yourself, knowing your plan and knowing your limits.

If you take the steps to prepare your finances and understand your competing market, you stand the greatest chance of success.

If you would like advice on how to do this or would like help finding your dream home, please reach out – I’m available any time ?