The most important aspect of any property transaction, including auctions, is whether you have done your homework before jumping in to a contract. You must know all the facts.
Things to look at and consider before buying: (this is where Hot Property Specialists Buyers Agency can help and guide you through the buying process, based on our years of experience - even for properties that are going to Auction.)
Look around the house and clarify small particulars (such as, is the dishwasher and Air conditioners included in the sale, and in the case of a rental property, do fixtures and fittings such as curtains belong to the tenant or the landlord?)
Always ask for a copy of the contract, this way you can read it in its entirety and this is when you would seek advice form your Solicitor. You may wish for your Solicitor to conduct searches on the property, as this must be done before Auction, with some searches your Solicitor may need taking 14 days for the searches to be completed - once again check with your Solicitor for their advice in this matter. A title search should be made available for the property also. This will give you further information regarding easements etc
You may need to speak to your financer regarding being able to purchase under the hammer - depending on your personal circumstances, they may need to have the property valued before you can bid at auction. Very important to discuss all of this well in advance of auction day.
Building and pest inspections should be conducted well in advance because it may take anywhere up to 24hours after the inspection for you to receive the full written report, which you will need time to read the report to be able to make a well informed decision regarding any issued that may have been raised by the inspector - inspections can only be held at the permission of the current owners and are done so at the buyer’s own cost. Hot Property Specialists Buyers Agency recommend to all our clients that it is money well spent having the property inspected by a Licensed inspectors.
Properties sold under the hammer are unconditional; this means you can not do the inspection after the hammer falls, the cooling off period is waivered and settlement is usually required within 30 days.
Make sure you have discussed the deposit, which is required on the day if you are the successful bidder on the day. This includes the amount of deposit and how this can be paid. Please remember that you can try to make the deposit smaller than they are asking, but this must be done in advance, and all parties must agree. Also a good idea to get this in writing to cover yourself on the day. Your solicitor can help you with advice on this matter, or should you be using our services then we will do this on your behalf if required.
On Auction Day: It’s important to arrive early on auction day. This gives the buyer the chance to look over the property for the last time and most importantly, to check that there has been no late changes to the contract.
Government regulation requires all bidders show photo identification and register with the auctioneer. Registered bidders will then be given a bidder identifier, such as a paddle or a number, to be used during the auction.
Place yourself in a good position and wait for the auction to begin. A good tip is to stand where you have a good view of other bidders and the auctioneer.
The auction will begin with the auctioneer reading the details of the property contained in the Contract of Sale and will also read the Conditions of Sale by auction.
Now the auctioneer will call for bids.
Buyers should raise their paddle to make a bid, and call out a bid if they want to move a bid by larger or smaller amounts. This is where Hot Property Specialists Buyers Agency have attended and bid at a huge amount of Auctions and we have the experience on how and when to bid, ensuring the buyer the best result. We also shield the buyer from the high pressure tactics of the agents on auction day.
It is important that buyers know their highest price range before the bidding commences and do not get carried away with the moment. Hot Property Specialists Buyers Agency can help you to buy with your head - not with the heart.
If you are the successful highest bidder at the auction, you must be prepared to sign a Contract of Sale immediately, and put down the prescribed deposit as discussed earlier.
If the reserve price has not been reached during the course of the bidding and the property is passed in for sale by negotiation, bidders may still be able to negotiate to buy the property after the Auction. The highest bidder in most cases has the first chance to negotiate but this is not always the case as it is up the seller how they wish to proceed from this point, with the advice from their selling agent.
If the sale does proceed as a ordinary sale by private treaty, then the cooling off period is reinstated, the contract can be written subject to various conditions of your choice (eg pest and building or finance) and the settlement terms can be more flexible.
Please Note: this information is to be used as a guide and at all times when looking to purchase Real Estate you should engage the services of a Solicitor.
Disclaimer: The information contained in this article has been carefully compiled and is not intended to be treated as a warranty or promise of the correctness of information.
Dear Liz,
We would like to thank you for your Gold Level Service, which was Gold for us. As you already know but the people reading this Testimonial do not, we live interstate and trying to buy...
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