Plan two prices:
- Ideal price – what it is you want to pay for the property
- Stretch price – the maximum price you are willing to pay for the property
The stretch price comes into play when bidding exceeds your ideal price. Remember, your stretch price is your maximum budget – if bidding goes over this price, stop and walk away from the property.
When planning your budget, consider things such as how rare is this property? Do you need to purchase now, or do you have time to wait for something else?
These are our general tips on what to consider when planning your budget before an auction. For specific advice tailored to you, please speak to a professional.