: Failing to account for the buyer's premium, stamp duty, or immediate repair costs can break your budget.
: Secure financing before the event. Most auctions require a 10% deposit immediately and the balance within 28–56 days. Be aware of the Buyer’s Premium , an extra fee (often ~10%) added to your winning bid price. real estate auction
: Foreclosed properties auctioned by banks can still have major structural issues or hidden legal entanglements. : Failing to account for the buyer's premium,
: Decide on your absolute maximum price beforehand and stick to it to avoid overpaying in the heat of competition. Pros and Cons Auction Sale Traditional Sale Speed 28–56 days to completion. 200+ days on average. Certainty Contracts are binding at the hammer fall. Plagued by "chain collapses" or gazumping. Price True market value discovered via open competition. Negotiated privately; may not reflect full demand. Risk "As-is" sales; limited recourse for hidden defects. Inspection periods allow for exit or renegotiation. Top Mistakes to Avoid Be aware of the Buyer’s Premium , an
: The auctioneer starts with an advertised minimum price.
: The seller sets a minimum "reserve" price; if bidding doesn't reach this mark, they aren't obligated to sell.
: Most auctions, especially online platforms like Xome or Palace Auctions , require you to register and provide ID/proof of funds well in advance.