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Purchasing a house at an auction in Brisbane can be quite a daunting process, especially since you need to have all your finances sorted in advance.

Being prepared is the name of our game here at Time Home Loans. We can help you overcome the fear of purchasing a property at an auction by making sure you are as ready as can be when auction day comes around!

The benefits of buying a house at an auction

Due to the regulations in Queensland, many people are too afraid to consider purchasing auction properties. We think that buyers, even first home buyers, should have no reason to fear auctions if they undertake thorough research. With any auction, doing your homework and being thoroughly prepared is the key to success.

With that said, there are many benefits to purchasing a property at an auction:

  • 1. There is usually less competition
  • 2. Prices can be lower than market valuations
  • 3. If you have your finances in order, you will know exactly what amount of funds you can access and what your buying range is
  • 4. The process is much more transparent than with a private treaty sale
  • 5. The process is generally much quicker and smoother than with any other type of sale

Preparing to buy your home at an auction

The best advice you will receive from anyone about buying a property at an auction is to do your homework. Extensive market research and due diligence on your capacity to access funds is essential before you start the buying phase. Not only will you feel more confident, you’ll also make better buying decisions.

The second best piece of advice you’ll receive is to have a team of professionals supporting you at every step of the way. You’ll not only need to learn how to evaluate the market, you’ll also need to learn how to evaluate your capacity for accessing your desired funds. There are experts who can help you through this process and you’ll be better off by chatting to them about your situation.

Our team here at Time Home Loans are specialist financial and mortgage brokers who are renowned for helping future home buyers become ready to buy a home. We have successfully helped many Brisbane residents obtain pre-approvals for home loans so they could bid at auctions.

If you’re looking for a home loan in Brisbane, chat with our team today.

Know your rights and obligations

It is our firm belief that if you know what your rights and obligations are during an auction sale, you’ll be in a much better position to make the best decision.

The laws in Queensland are different, and more restrictive, than in other states. If you are the successful bidder at an auction, you must settle the contract even if you change your mind, can’t afford it or if the building doesn’t pass a building or pest inspection.

Also, when you buy at an auction:

  • There’s no cooling off period
  • You’ll need to be approved to bid by your bank
  • You must have professionals carry out a building and pest inspection
  • The bids may take place on an unconditional basis (this means you can’t have conditions like ‘subject to finance’ in the contract)
  • It is wise to get advice from trusted financial planners
  • Queensland’s price quoting laws prevent sellers or their agents to give a price estimate for an auction property
  • Knowing your price limit and sticking to it is essential. If you are the successful buyer but have bid over your limit, there may be hefty fines associated with your withdrawal from the contract.

Getting a loan for an auction property

The most daunting aspect of purchasing a property at an auction is the unconditional contract such properties attract. On the day, if you sign your name on the dotted line you are making a commitment you cannot back out of. Having your finances in order before this day is not only necessary but crucial.

If you are seeking to take out a loan to purchase a house at an auction, you need to make sure you do your homework thoroughly beforehand. Like all things, if you’ve evaluated the property and your financial standing upfront, you should be as prepared to sign at an auction property as you would have been in any other case.

Our team are specialist finance and mortgage brokers who love helping people access the finance they need to make their dreams a reality. We can not only assist you in the process of getting an auction loan pre-approval but we can also assist you in the process of becoming buyer ready before auction day hits. Through our process and with our 7-day finance terms, you will know exactly what funds you have available to you in a relatively quick timeframe.

Becoming buyer ready

Buyer readiness is the process we go through with you to ensure you are confident in purchasing a property at an auction. The Time Home Loans team takes pride in our capacity to help future home owners become ready to buy their property without fear or stress.

Through this process, our team can help you complete your due diligence so you are fully aware of what your capacity to borrow is. You will also be in a position where, if the property you’re eyeing off were to value differently, you could still manage to get that property without overextending your finances.

It is quite frequent for auction properties to meet the value of the purchase price on the market because the market has a big influence in respect to valuations. In the case a property’s value is higher than expected and beyond your budget, we ensure that you will mitigate risk and avoid overextending your finances.

Need help accessing a loan for an auction home?

If you’re looking at purchasing an auction property in or around Brisbane, the Time Home Loans team is here to help.

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