Is it worth considering purchasing a property at an Auction?

Prospective buyers could be struggling to bid for properties because of higher interest rates. Lenders are re-adjusting downward their maximum borrowing limit, leaving some buyers in a difficult situation if their offer has been accepted and yet they now can’t finalise their purchase.

This is particularly prevalent when buying a property at auction. Deciding whether to buy a property at auction or not depends on several factors, including the type of property you want to buy, and your risk tolerance.

Here are some things to consider when considering whether to buy a property at auction:

If you’re considering buying a property at auction, it’s important to do your research beforehand. Look into the property’s history and condition, and make sure you have your financing in order. It may also be a good idea to attend a few auctions as an observer to get a better sense of the process and the competition.

If you believe your finance pre-approval was at an absolute maximum, check in with us before your auction to provide some scenarios at higher interest rates. We can then tell you if your approach is comfortable or at a higher risk in the event of your interest rate rising. We can advise if you should hold off and possibly negotiate if the auction was unsuccessful.

With uncertainty in your borrowing power, it is always best to chat to us before you buy. Our services provide a purchaser with a no obligation free consultation. I look forward to hearing from you.

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