Buying At Auction
Buying a home will probably be the most expensive thing you ever do, so it’s important to know as much about the process as you can. With so much to think about and so much money at stake, every decision counts.
Before you decide to buy a home it makes sense to take the time to look around and get to know the market. This will also help you understand how it all works so you can make a well-informed decision when you find the property you want.
Auctions
Register Your Interest
Once you have inspected a property if you are interested it is extremely important to let the Agent know. It is also important to keep in regular contact throughout the campaign with the Agent to make sure you are advised of any other interest and offers.
Prior to Auction
If you are seriously interested in a property and intend to bid you should have your Solicitor/Conveyancer inspect the Contract of Sale. If you do not have a Solicitor/Conveyancer our Company can recommend one to assist you.
Make sure you have a clear understanding of all the Special Conditions and exactly what is included in the sale. All fittings, furniture and other items to be included should be clearly itemised.
Ensure that you have your Finance in place prior to the Auction.
On the Auction Day you should always check that your copy of the Contract of Sale is exactly the same as the original Auction Contract and that there have been no late changes.
Auction Day
Decide prior to the Auction what you are prepared to bid based on your knowledge of other recent comparable sales in the area. Set yourself a limit, which you can afford. If you are the successful bidder at the Auction you are required to sign the Contract of Sale and pay a deposit (usually 10%) on the spot. The deposit can be paid by Personal or Bank Cheque or subject to prior approval with the Agent by Deposit Bond.
It is important to remember that when you buy a property at Auction you are not entitled to any Cooling Off Period. At Auction, the best policy is to bid loudly and confidently signalling to all other bidders you intend to purchase the property or should the Reserve Price not be reached that you are given an opportunity in any further negotiations.
If the Reserve Price is not reached at the Auction the property is "Passed In" to the highest bidder. It is extremely important if you are interested in the property to be the highest bidder as this gives you the first right to negotiate a sale. Most properties passed in are sold immediately after the auction to the highest bidder.
Private Treaty
Once you have found the property you wish to purchase you should immediately contact the agent who has shown you the property and let them know about your intention to submit an offer.
You spend big money on a new home so it only makes sense that you should feel comfortable about your investment. One way of doing this is to have pre-purchase building and pest inspections done. This means that before you sign any contracts you hire a trades person, who specialises in inspection work, to carry out a careful inspection of your property, be it a house or a unit.
Even if you are buying at auction, it is important to have an inspection done before hand even though you may not be the successful bidder on the property.
Financial Considerations
When considering a home you should consider getting your finance approved before you go looking. You should investigate interest rates, the requirements of lending institutions and the different loan products currently available.