Tag: Buying at Auction

Ready, set…auction!

Written by on 14 May 2026. Posted in Property. No Comments on Ready, set…auction!

Before you consider bidding use our tips to make sure you’re prepared and know what to expect.

Step 1:

Work out the costs

Working out how much you can afford to repay on a home loan plus all the associated costs of buying a property – like stamp duty – is the first step.

Of course, buying at auction means the final purchase price remains unknown until the hammer falls. But a defined financial limit means you’ll know when to stop bidding.

Use a home loan calculator and speak to a financial planner to understand all the costs of buying a property.

Step 2:

Arrange finance

Make sure you’re ready to bid. That means knowing exactly how much you can borrow comfortably because your lender has assessed your situation and approved a specific amount.

Visit your lender before you start looking for a property and arrange pre-approval so you’re set to go. With an approved home loan you can benefit from competitive interest rates and terms, plus the convenience of pre-approval.

Step 3:

Do your research

It can take time to find the right house. Researching the area will give you an idea of prices for similar properties.

Attend auctions in the area so you understand the strategies agents use and what to expect.

Before buying at auction, make sure the property is solid – arrange building and pest inspections. And read the contract, certificate of title and section statement so you understand what you’d be buying.

If possible, ask a solicitor to look over the paperwork with you.

Step 4:

Ready, set … auction!

Before the auction, decide who’ll bid for the property-speak with the real estate agent. You can ask someone to bid on your behalf; they may need to sign a proxy form.

If the reserve price-the minimum the seller will accept – is reached and you’re the winning bidder you’ll have to sign a contract of sale and pay 10% deposit immediately after auction. Ask the agent how you’ll need to provide the deposit. Will you need a personal cheque book?

If the reserve price isn’t reached but you are the highest bidder, the agent may negotiate with you and the seller afterwards.

Step 5:

Be prepared to walk away

If your heart’s set on a particular property, it can be difficult watching someone outbid you. But it’s better to walk away without a property than with a debt larger than you can repay.

Remember your financial limits and stick to them. You’ll avoid paying more than you can afford – or than a property may be worth – and stay out of the emotional charge an auction can create.

Making the decision to buy or not to buy can be complex, so it’s important to talk to your financial adviser before you take the plunge.

Need some help to get started?

For more advice and strategies on getting into the property market, speak to your adviser at SFP. Or if you don’t have an adviser yet let us arrange an appointment, contact us on 02 9328 0876.

This article contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information.

3 Big Mistakes Made by First-Time Home Buyers in Australia

Written by on 28 December 2018. Posted in Property. No Comments on 3 Big Mistakes Made by First-Time Home Buyers in Australia

As you may have noticed, buying a home isn’t a simple process. It can easily the biggest financial transaction you’ll be involved in, and much bigger than buying a car or even starting a business.

Buying your first home, in particular, can be tricky. Once you’ve been through it the first time, it gets easier – you won’t feel so nervous about buying your second property in years to come.

There are, however, a few things most young people get wrong when buying a house for the first time. Let’s see what they are and what to do about it.

Mistake #1: Searching for a house first and a loan later.

Buying your first home? Then forget about the home searching for a while, focus on getting prequalified for a mortgage first. It’s only when you’re prequalified for a mortgage that you know you have enough cash on hand to pay for the home purchase.

The problem is most young people do the opposite – they just look for a house within a particular price range and then think about qualifying for a mortgage. That’s not the way to do it. The lender considers your credit worthiness and credit history, your current employment status and other factors and only then takes a decision on the loan.

When you get prequalified for the mortgage, buying a new home becomes a financial move, and allows you to think objectively. The last thing you want is to get too emotional about the whole thing. Just treat it as a business deal and keep a level head.

Mistake #2: Not considering other expenses apart from the mortgage payments.

One mistake first time home buyers make is to assume that just because they can afford the mortgage payments, that is all there is to it. No, the mortgage payments are only a part of your expenditure on the house.

You should consider other costs such as stamp duty, strata levies, property tax, home insurance payments, water and electric bills, internet bills and so on. Make a detailed assessment of your various expenses on the house vs. what you can afford before buying the house.

Mistake #3: Thinking you don’t need professional help.

If you’re a first time home buyer who is new to the game, you can’t do it all by yourself. You need help from an experienced real estate agent, a professional loan officer or mortgage broker you can trust and perhaps a lawyer who specializes in real estate deals.

It’s not really a good idea to venture out into the home buying process alone. You need support and guidance from proper professionals, people who know their stuff and can guide you through everything related to buying your first house, from applying for a mortgage to searching for a house in the right neighbourhood.

Need some help getting started?

If you’re looking to buy or just wanting to understand the process and get organised, get in contact today for an initial chat on 02 9328 0876.

Article by Leigh Morris | Mortgage Broker & Financial Planner

General Disclaimer: This article contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information. Please seek personal financial advice prior to acting on this information.