Experiencing the Joy of Buying Your First House at Auction

Buying your first house is a significant milestone, but it's not always as straightforward as it seems. In our case, we chose to purchase our home at an auction due to the limited availability of properties in our desired price range and area.

The Road to the Auction

Before the auction, we had already done our research and pre-approved our home loan. We knew that most of the houses in our price range were being sold at auctions, so we decided to attend one with a realistic budget in mind. We viewed the property the weekend before, which confirmed it met our needs, but we expected it to sell for more than our budget.

The Auction Experience

The auction was held at a convention room outside the property, with around ten other properties being auctioned that same evening. We arrived prepared, bringing a bank check for the deposit amount in case we decided to bid. We had agreed with our partner on our maximum budget and were ready to bid without sharing our strategies during the auction itself, which helped us maintain a calm and strategic approach.

Winning the Auction

The bidding process was intense but controlled. Our competitor lowered the increments to 1k or 5k, but we maintained our 10k increments, which helped us secure the house. The house was passed in under the reserve price, but we had the highest bid, giving us the first right to negotiate. We eventually agreed to buy it for just 2k more than we had bid. We were excited yet nervous, feeling relieved when we were told that a slightly higher offer had been made but was too late.

The Post-Auction Hassle

The post-auction process was the most stressful part. We needed to gather a significant amount of documentation, including payslips, references, and confirmation of employment, to secure our loan approval. We had a limited timeframe after the auction to complete these steps, which added to the anxiety. Thankfully, moving electronically with our second property was much easier and streamlined.

The Final Touches and Moving In

After everything was sorted, we had our final inspection, which the vendor made a bit stressful due to their delay in moving their belongings. However, moving in felt incredibly rewarding. Our new home was better than our previous rental, with more space and no more rental inspections to worry about. It was a relief to finally have a place where we could truly make it our own.

Buying your first house, especially at an auction, can be a daunting process, but the joy of owning your own space can make it all worthwhile.