An auction guide for buyers
Auctions, auctions, auction. We love them and we also don't. An auction can provide you with a terrific opportunity to purchase your dream home and the best bit about it is that the negotiation is all so transparent. You set out your conditions for settlement etc. and then everyone starts bidding. The highest bid wins. So simple, right?
Auctions can also be a bit daunting. The trick to bidding confidently is to be prepared and fully understand all the implications and requirements for each stage. So on that note, here's what we suggest.
Before the auction
Prior to bidding or making an offer, have you:
- Arranged finance?
- Organised your deposit?
- Commissioned building, pest and compliance inspections if required?
- Obtained a copy of the contract and fully understand it, or have received advice on the terms and conditions from your solicitor?
- Calculated costs, i.e. stamp duty and legal fees?
On the day of the auction
- If the property has reached reserve price and you are the final bidder - congratulations, you have bought the property. All that is left to do now is to sign the contract, pay your deposit and celebrate. Note: There is no cooling off period.
- If the property has failed to reach reserve and you are the highest bidder, you will generally have the first right to negotiate under auction conditions (as above) with the owner and your Independent Property Group Agent.
- If the property is passed in and immediate negotiations do not reach agreement, the property will generally be placed on the market for private treaty negotiations at a price instructed by the seller.
Things to keep in mind
Properties are usually open a minimum of 30 minutes prior to auction, so it’s a good idea to have one final look.
Register to bid
Ensure you bring ID. It’s a good idea to register before the start of the auction. If you are running late – don’t worry, you can register anytime up until the fall of the hammer.
Make sure your bidding paddle is visible to the auctioneer when you make a bid.
Know your limit
Always ensure you bid to what you can afford. Know your maximum. Auction day can be stressful and this can stop you from getting carried away.
If an offer is accepted prior to the auction commencing an immediate unconditional exchange of contracts must take place before the property can be taken off the market.
Submitting an early offer
If your early offer is accepted by the seller you must submit the offer in writing, on the contract document, attached with your agreed deposit and cooling off certificate from your solicitor.
When bidding at auction, be prepared, confident and bid loud and clear.
Nominating a bidder
If you want someone else to bid on your behalf, you need to provide them with signed authority before the auction.
Have unanswered questions about the auction process?
One of our friendly property professionals would love to have a chat over email, over the phone or in person.