Buying at Auction
There are a number of things for buyers to think about before bidding at an auction:
1) Be informed about property prices in the area you are interested in.
2) Obtain a copy of the contract. Get advice from your solicitor.
3) Let the agent know of your interest, they are there to help you.
4) Have your finances ready.
If you are going to bid on a property it may be a good idea to arrange for professional building and pest inspections, surveys, strata searches etc prior to the auction.
If you need to sell a property to purchase at auction, speak to a Pam Easson Real Estate Sales consultant agent beforehand to see if you can arrange for an alternative settlement date.
The terms and conditions of auction sale are required to be on display at the auction.
People intending to bid at an auction are required to register with the selling agent. Registration normally takes place prior to the auction; you will need to provide proof of identity to register.
Before the auction starts, check that the copy of the contract you have been given is the same as the contract displayed at the auction. In some cases, there could be late changes to the document.
If you are a first-time buyer, it is a good idea to go to a number of auctions while you are looking and get used to the process.
If you are bidding, make clear and confident bids.
Know your price range and set an absolute limit. Don’t let the excitement get to you.
Remember to take your cheque book! If you are the successful bidder you will have to pay a deposit (usually 10%) when you sign the contract following the fall of the hammer.
If you bid, but the property is passed in, the auctioneer may invite you to negotiate. The highest bidder is normally given the first right to negotiate.
If you really want the property and don’t want to bid at auction, you can put in a pre-auction offer. Many properties are sold this way. Some vendors will still want to go to auction, but many are willing to negotiate prior.