Checks and balances key to buying an interstate investment property at auction

Purchasing property interstate is a great way for buyers agents to round out a client portfolio, making possible gains that may not be available in their immediate area.

But to make sure the exercise comes without a sting in the tail, it’s essential to get your research right so that you have a good understanding of the local market, its price points and value proposition. Ticking off on this box upfront will save you overspending when it comes to auction day.

If you can’t get to an inspection in person, request one virtually via FaceTime with the sales agent on the ground. Better yet, engage a local property professional to physically inspect on your behalf. This will cover the all-important check that the property presents as marketed.

Property laws vary from state to state, so if you’re buying in Queensland but live in New South Wales, you will need to be across that state’s regulations on your client’s behalf.
Mortgage pre-approval will need to be in place when you’re buying at auction, as there’s no cooling off period. You’ll also need to factor in extra costs such as stamp duty, legal fees, building inspections and funds for any immediate repairs or renovations.

Ask the agent how much of a deposit is required along with the company’s bank account details and their process for transferring funds.

Real estate agents have systems in place to help guard against the unfortunate but very real risk of fraudulent activity. They will have a process for verifying the purchaser’s identity – protecting both their own business and the buyer.

By carefully working through the above process, you’ll be able to buy property on behalf of your clients at interstate auctions, making informed decisions that align with their investment goals and risk tolerance.