The Reserve Bank of Australia’s new Chair Michelle Bullock today announced the central bank would hold the nation’s cash rate at 4.10%.
Despite the cash rate sitting four percentage points higher than its all-time low in 2022, we are still seeing the typical Springtime boost in properties going to auction. The week ending 24 September saw an estimated 2,725 properties go under the hammer, up from 2,314 the week prior and 2,275 from the week before, according to CoreLogic. This is more than double the auctions seen this time last year.
And so it looks like flowers are in bloom, birds are chirping (and swooping) and auctioneers have truly warmed up their gavels. That’s right, we’re in spring selling season. Are you prepared?
Whether you are just beginning your property-purchase journey, or adding to your portfolio, it is a good idea to have a chat with your broker to understand your borrowing capacity and whether pre-approval could help you have more confidence when bidding.
Some quick tips to help you on your bidding journey.
- Keep an eye on the market. See what other, similar properties in the area are selling for.
Reach out for a property report. I can provide this free of charge, showing the approximate value of the property you are interested in. - Attend open homes. Even if you don’t think you want to bid for that property, it can help to understand demand in the area.
- Create a shortlist. By having a few homes on the radar you could be less likely to develop an emotional tie to one, which can lead to bidding higher than you were comfortable with.
- Have a support team. It’s a good idea to have a conveyancer/solicitor ready to go and aware of your intention to buy. You may also consider getting a building inspector to have a look before the auction and of course, your mortgage broker.
If you are heading to auction, some important things to keep in mind include:
- When you bid at auction, it is unconditional and there is no cooling-off period. This means there are no finance or building and pest inspection clauses.
- You are required to pay a deposit – ask the agent what % they require (most commonly this is 10% of the winning bid).
- If the property does not sell at auction, you can negotiate with the seller. If successful within two days of the auction, there is also no cooling-off period.
- “Dummy bids” whereby someone tries to raise the bidding after the reserve price was reached, are illegal.
