It’s not easy getting on the property ladder, average house prices are high and the average age of a first-time buyer is 34 years old. Much of this is because the prices are so high it can take years to establish the necessary deposit.
That’s why so many people look for alternative ways to get their own property, in fact, that’s the reason why Australia is a world leader in home building, it’s one of the cheapest ways to get your own property.
But, there is another option, that’s using the services of a reputable auctioneer Sydney.
Auctions are a great place to purchase foreclosures where the bank is only interested in getting their money back, this means the house can sell for much less than it’s really worth. However, there are several pitfalls to this approach, you need to be aware of them before you commit.
One of the biggest issues is that you can’t usually view a property before you make your bid. It’s normal to have the address and to be able to do a drive-by, you can even peek in the windows. But, you won’t be able to have a proper look or get a survey done until after you’re committing to purchase the property.
That means you need to be prepared to do extensive work inside, although this may not be necessary.
Don’t forget, if it’s a foreclosure the old owners may still be in the property, you mustn’t disturb them as you’ll be breaking the law.
It can be more difficult to get funding for a house that you haven’t yet seen. In most cases, you’ll need to pay for the property in full within 48hours of making your successful bid. You can pay by cash, cashier’s check, or possibly via a transfer. But, you will need the funds ready.
When the bank is dealing with foreclosure it is possible that the current owners will come up with the funds or a viable payment plan right up to auction day. That means the property may not appear in the auction, may never appear, or may simply be postponed.
You can’t set your heart on a property, instead, you need to have several potential ones lined up and go with the one that you can get at the best/affordable price.
Wait Before Doing Anything
It is possible that the current owner will file an objection to the sale, they have a limited amount of time when they can do this. It’s important you don’t do anything with the property until you have the official title deeds, then it’s yours and you can enjoy!
Don’t forget, before you can bid at an auction you need to be registered. This involves confirming your identity and, in many cases, you’ll need to give the auctioneer a refundable deposit, registering your interest in the auction. The money will be returned but it shows the auction house that you’re serious about bidding and buying. Things can move very quickly after a successful bid so be prepared.