Buying at Auction
f you are planning to buy a property at auction, it is important that you understand your rights and responsibilities.
As a bidder at an auction, it is a good idea to familiarise yourself with the whole process and attend an auction or two as an observer. This will give you an idea of how auctions take place and what you can expect on the day.
It is important to be prepared as much as possible for the auction day. Follow these simple steps:-
Step 1: Compare Recent Sales
Do your homework and take the time to find out what prices properties in the area have sold for, so you have a guide to the market value of the home you want.
Step 2: Engage Inhouse Conveyancing
Well before the auction day you should contact our office to examine the sale contract promptly and professionally to make sure everything is in order.
Trying to save hundreds of dollars could put you at risk in spending thousands of dollars later on. Don’t let this happen to you.
Step 3: Sort out your Finances
It is important to have your finance pre-approved before attending auction. This will allow you to work out what your budget is and how much you can borrow.
We can help by putting you in touch with our panel of experienced mortgage brokers.
Step 4: Order Inspection Reports
Prior to auction, you will need to ensure that you have completed your pre-purchase inspections. Unlike buying a house that is for sale, there is no cooling-off period when buying property at auction.
We can help arrange inspection reports on your behalf.
Day of Auction
You must be registered in order to bid at an auction of residential property. All you need to do is give your name and address and show proof of identity to the agent when attending the registration process. You will be given a bidder’s number which you must display when bidding.
If you want someone else to bid on your behalf,they must give the auctioneer a written authority from you, before the auction starts. For more information about bidding at property auctions, contact Inhouse Conveyancing.
Before auctioning a property, the seller will nominate a reserve price which is usually not told to the interested buyers.
The reserve price is the lowest price that the seller is willing to accept. If the highest bid is below this price, the property will be ‘passed in’. The seller will then either try and negotiate a price with interested bidders or put the property back on the market.
If the bidding continues beyond the reserve price, the property is sold at the fall of the hammer. If you are the successful buyer, you must then sign the sale contract and pay the deposit on the spot (usually 10%).
Remember there is no cooling-off period if you buy at auction. If the property is passed in at auction but you end up exchanging contracts on that same day,the cooling off period still does not apply.
Tel: 02 8798 4544
Monday to Friday
9am – 5pm
Inhouse Conveyancing operates by appointment only to ensure each client is given our full attention and appointments are not cut short.
Thanks Inhouse Conveyancing for all your help, we really appreciate it. You are so easy to deal with, provide a fantastic service and we will continue to recommend you to our friends.
We will be in touch next year re the conveyancing on our current place once we are ready to sell and promise to give you more notice then we do when we buy houses!