Go to auction or buy beforehand?

“Hello and welcome back to weekly buying tips I’m Dean Berman from Berman Buys.

Both methods will have competition but the auction will be transparent whereas buying beforehand can often involve unknown competition.

The price quoted can be within 10% of where the agent thinks it will sell.

With the auction you will generally need to get everything ready beforehand such as contract review, knowing your numbers and finances, pest and build and or strata report.

The same goes for buying beforehand during an auction campaign as it is fairly common for the agent to request a 66W or unconditional exchange to ensure the deal proceeds.

Emotions can get in the way in both methods, however on auction day and during the heat of the moment these can be at their highest, whereas buying beforehand can give you a little more time to catch your breathe

Generally speaking in both methods you will need to provide the agreed deposit once successfully agreed as the highest bidder and signing of the contract, in the auction this will happen straight after the auction finishes and in beforehand, this will usually occur within a few hours at most when buying beforehand.

It’s a hard one to say which one you will get for a lower or higher price, it really does come back to the property itself and the level of competition.”

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