How To Bid On Real Estate in Darwin, Northern Territory
If you're in the market for a new property, you want to make sure that you're bidding on the right one!
Here's a few tips to help make sure that you get the best deal possible when it comes to real estate in Darwin, Northern Territory. With these in mind you'll be able to snag yourself a great property at a great price!
Whether you're a first home buyer, a seasoned investor, or someone who simply wants to own their own home (or apartment), keep reading to find out how it all works.
What is an auction and how does it work?
Firstly though, we need to understand what a real estate auction is.
Basically an auction is when you sell something to the person who offers the most money. This is usually done by raising a hand, making a bid, or indicating that you're ready to buy.
When somebody wants to buy something at the auction, they say something like "I'll give you $100 for it" and then the other people can either say "I'll give you more," or "I'm out."
If more than one person wants to buy it, then they have a bidding war where they keep raising the offer until one person says "I'm out." This happens until there's only one person left (and that person will become the new owner!)
Using an online auction to buy real estate
One way to buy real estate (like a home or apartment) is by using an online auction. This means that instead of going to look at an actual physical home or apartment, you look at it online.
You can view pictures of the home or apartment on a website and people can bid on it like they would any other product. Depending on the contract details, the highest bidder will generally win the bid.
Online auctions are convenient because you can make a bid from the comfort of your own home! Or down at the beach in your kombi, (wherever you may be!)
One way you can potentially buy real estate in Darwin and / or surrounding areas is by using a bidding tool called Openn. We'll talk more about how this works below.
Know what you want and need in a property
Before you bid on anything (whether that's an apartment or house you've never actually seen before), you should know what you want and need in a property.
It's all very well to dream about how amazing it would be to wake up to a golden sunrise and a pot of steaming coffee, but (as people keep telling me), you also need to be real about a few things!
In the case of Darwin city, these questions might be:
Do you want to live in Darwin city, or further out in the sticks?
What size of the house or apartment do you ideally want?
How many bedrooms and bathrooms would make the most sense?
What kind of neighbourhood / surrounding areas / parks / recreation etc
How much money are you willing to spend to get these things?
You also need to be realistic about what kind of repairs or updates the property might need so that you're not surprised later on.
By doing your research and knowing what you want and need, you'll be in a much better position to make a smart bid on any real estate in Darwin, or other areas.
How to inspect the property before bidding
Before you bid on a property, it is important to inspect it. This means looking at the property online and, even better, going to see it in person if you can.
If you can't go see it in person, make sure that you ask the owner or the real estate agent lots of questions about what the house or apartment looks like.
You want to know about any damage, what kind of repairs it might need, and anything else that could affect how much the property is worth. Inspecting the property will help you make a more informed decision about how much to bid.
When you're looking at a property online, take some time to really examine all of the photos. Look for any signs of damage, such as water stains on the ceilings or walls, cracks in the foundation, or peeling paint.
An eye for details
If you spot any issues, make sure to ask the owner or agent about them. They might be able to tell you that the damage is minor and easily fixable, or they might give you a discount on the property because of it.
If you're able to see the property in person, take your time walking around and looking at everything. Pay attention to small details, such as how well the house has been maintained.
Are there any obvious signs of neglect? Is the yard overgrown? Did the teenagers party too hard in the kitchen? These things can all add up to give you a better idea of the property's value.
Once you've inspected the property, you should have a good idea of how much it's worth and how much you're willing to bid on it. Remember, though, that there is always some risk involved in buying property sight unseen.
How to make an offer or bid
To make an offer or bid for your new dream home or gorgeous apartment, you can use a website like Openn.com to find the property you want.
The first step is to find the property you're interested in. The next step is to enter a starting price (pending price) on the property you want.
At that stage, you'll be asked to fill out a few details, something like:
Complete the terms so the owner can look over them
Terms may include deposit amount, settlement date, etc.
Some personal details so they know how fabulous you are!
Once the vendor agrees to your terms, that pending price you submitted becomes live on the property, and you'll be allocated a unique paddle number.
Congratulations, you're now qualified to bid!
Now you can continue making online bids for the property, and if you're successful, the property is yours!
Openn is a transparent process
Technically, the Openn process works a bit like this...
As a qualified buyer, you can see the paddles (numbers) that represent the other qualified buyers. You'll also see the current highest bid, the final bidding stage, the bidding timeline and so forth.
You can (as a qualified buyer), improve your price at any time, or you can just hang back and wait for the final stage of bidding, where things might heat up a little!
Alternatively, if you happen to be the one and only qualified buyer and the price you submitted is acceptable, the seller can instruct (inform or tell) the agent to sell at any time to you.
"In an Openn Negotiation, after the clock runs out, if the property has met reserve then it is sold to the highest bidder. If it has not met reserve, it is passed in and the agent will continue negotiations. In Openn Offers, while there may be a final offer stage date set, the property can still sell at any time."
What to do if you win the bid
It may seem a little complicated but getting your hands on real estate in Darwin NT is not that difficult!
So, if you were to win an online bid for a house or apartment using a tool like Openn.com, what would happen next?
You'll be contacted by the seller, who will provide you with more information about the property and how to proceed with the sale. At some stage you'll need to provide contact information, including name, email address, phone number (etc).
Once that is sorted, you'll need to pay the seller for the property. This can be done through the Openn.com platform, or through another payment method agreed upon by both parties.
After payment is complete (yippee!), you can schedule a time to visit the property and sign the purchase agreement. Once that is done, you become the legal owner of the property!
Contract of sale and settlement
When you win a bid for a property on Openn, the contract of sale and settlement is drawn up between the seller and buyer.
The settlement process is managed by the Openn team, who work with you and the seller to make sure the sale goes through smoothly.
You'll need to provide proof of finance before Openn can finalise the sale. Once all paperwork is in order, Openn will organise for settlement to take place at a mutually convenient time.
There is quite a bit of flexibility and time allowed in the bidding process with Openn so feel free to give it a go, especially if you're really keen to own some real estate!
The risks of buying at auction
When you bid on a property through an online auction, there are risks that you need to be aware of. Like, for example, someone might outbid you at the last minute.
This could mean that you lose the chance to own the property. Another risk is that the property might not be as good as it seems in the pictures or description.
You could end up buying a home that needs a lot of repairs, and then you'll have to spend even more money fixing it up. Make sure you are aware of these risks before bidding on any property!
Another thing to keep in mind is that you might not be the only one bidding on the property. There could be other people who are interested in the same property, and they could outbid you.
This is why it’s important to do your research before bidding, so you know what the property is worth and how much you are willing to spend.
As long as you do your research, (and know what you’re doing), it can be a great way to buy a property!
First home buyers
As a first home buyer, it can be tricky to know where to start when it comes to bidding on property. Here are a few tips to help you out:
1. Do your research
Before you even think about bidding on a property, you need to do your research. Know the market inside out – what are the average prices for properties in the area, what kind of properties are available, and what kind of offers are being made? This will give you a good overview of what you should be offering for the property you have your eye on.
2. Have your finances in order
You also need to make sure that you have your finances in order before bidding on a property. Have a solid idea of how much you can afford to spend, and make sure that you have pre-approval for a loan if necessary. This will show the seller that you are serious about buying the property, and that you are ready to go ahead with the purchase if they accept your offer.
3. Make a realistic offer
When it comes time to make an offer on a property, make sure that it is realistic. Don’t go overboard with your bid just because you’re excited about the prospect of owning your own home – this will only put off the seller and could mean that you lose out on the property altogether. If your research tells you that the average price for a property in the area is $300,000, then make an offer somewhere around this amount – not $320,000 or $280,000.
By following these suggestions, you should be able to make a successful bid on a property in Darwin city or surrounding areas!
Buying real estate in Darwin city
We've gone through how you can use the 'real time' Openn real estate tool to spot great real estate in Darwin and / or surrounding suburbs.
Some other things you might like ponder:
Is Darwin property a good investment?
What is the average price of a house in Darwin?
Are house prices going up in Darwin?
Now all you need to do is give it a shot, and let us know how your real estate bidding process goes!
