Three benefits of buying at auction

Buying at auction might just be the break you need to get you ahead of the pack, and if you’ve never considered it before, here are three reasons why you should consider buying at auction.

Sjanna Sandalova

If you are currently one of the many West Australians looking to acquire a property, it's helpful to know there are alternate ways to buy other than the traditional buying methods.

Buying at auction might just be the break you need to get you ahead of the pack, and if you've never considered it before, here are three reasons why you should consider buying at auction.

Why buy at auction?

Buying at auction can be a great way to expand your options. You may face less competition to buy an auction house compared with buying in the traditional way, but you will also be dealing with a different pool of potential buyers-often, experienced investors, so it is wise to come prepared.

1. Transparent process

The auction process gives you every opportunity to purchase the property in a professional and transparent manner where you can see your competition in real time.

The most important thing to realise is that you as the buyer determine the price rather than the seller.

There are no behind-the-scenes negotiations happening that you are not aware of and you know you have the same terms as all the other buyers, keeping you in a position of power the whole time.

2. Saves time

Buying property at auction is typically a faster process as they eliminate lengthy and protracted negotiation periods. There are no "Expressions of Interest" dates or timelines. The auction day is known and proceeds whether you are there or not.

3. Highly organised and regulated

All buyers are required to register prior to auction, and there are a number of things you can do beforehand, so you come prepared and ready to buy on the day.

The deposit amount is known well in advance and you can transfer this to the real estate agent's trust account in advance of the auction. If you are successful, it stays there until settlement. If you are not successful it is simply refunded!

You should ask the agent for and receive comprehensive information on the property well in advance of auction day by way of a "Due Diligence Pack" or "Information Memorandum."

Read our six tips on how to prepare and bid at auction.