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5 Top Tips To Buying A Property On Auction

We did the digging and the research to put together these 5 top tips to buying on auction.

Posted: 30 September 2019

The number of registered buyers at auctions is steadily increasing as more and more buyers and sellers are starting to take note of and experience first-hand the benefits of auction.

There are a variety of reasons as to why property auctions are growing in their popularity. Have a look at our article on the topic to find out more about them. What it comes down to is that auction sales are a simpler method of buying and selling property, compared to traditional real estate avenues.

If you are wanting to buy your first property on auction and are a newbie to the bidding game, or perhaps you consider yourself a seasoned bidder and are in search of a few expert tips, then you have come to the right place.

We did the digging and the research to put together these 5 top tips to buying on auction.

1. Do some digging

The first trick is to make sure you have done your homework.

Come to the auction armed with as much knowledge and information on the house or property you want to buy.

At AuctionInc we will provide you with images of the property and any additional information you may require. You can get in touch with one of our friendly brokers and we will help walk you through the process.

Some essential information you can find out about:

  • Rates and taxes
  • Levies
  • Zoning
  • Surveyor General Diagram - This holds digital images of diagrams, sectional title plans and general plans
  • Offer to purchase

You can also conduct your own online research about the area/neighbourhood to get a feel for property prices, security and other attractions in the area.

2. It’s time to take a look

As you would with a property sold through traditional real estate methods, you might have the chance to view the property and inspect the place before it goes on auction.

This is where you need to pay close attention to details. Make sure everything is functional, from the wiring to the piping, and if it’s not, ensure you are prepared to cover these repairs and renovations. Also, pay attention to the surrounding property, the neighbourhood and the overall ‘feel’ of the place.

You can typically arrange this inspection with the auctioneer or broker handling the auction.

Read: What you need to know before buying a residential home.

3. Don’t forget about voetstoots

The voetstoots clause outlines that the seller does not have any responsibility for anything that is broken or damaged. This means that if the property is in need of repairs, then you need to prepare yourself for renovation costs.

Basically, when buying a home or property on auction you are agreeing to purchase it with any defects or damages it may have at the time of sale.

4. Get your finances in order

Now that you have done your research, inspected the home and are happy to proceed with the bidding on auction day, you need to ensure your finances are ready and waiting.

Auctioneers will not allow time for you to arrange your finances once the hammer has fallen.  If yours is the winning bid, you will need to have the deposit ready, as well as a guarantee that you will have the balance available shortly. 

Basically, you need to decide what the highest price is, based on your budget and what you can afford that you will pay for the property and make provisions for this amount.

5. Have the right documents in place to prove your identity

Before getting to the auction, you need to come with your green ID card or book to register as a potential buyer.

The auctioneer will also ask for your proof of residence, a utility bill or rental agreement will work well.

If you are buying the property in the name of a trust or company, then you need a signed document known as a resolution from all the members, directors or trustees that grants you the power to sign for the sale on their behalf.

Auctions are an incredible way to purchase a property at great value without going through the waiting periods and back and forth of other real estate avenues.

Here’s to bidding!

Until next time,

The Auction Inc Team

 

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