Auction FAQ

How do I buy a property at auction?
Can I buy the property before the Day of Auction?
How do I know how much to offer?
What are the Terms and Conditions of Sale?
I would like to buy the property at auction. I need to arrange finance?
When is the reserve price set on the property?
How is it that some properties do not sell?

How do I buy a property at auction?

· Thoroughly inspect the property and carry out your own investigations.
· Ask to see searches, contracts and related documentation.
· Inspect comparable properties to decide the maximum price you would pay.
· If you want to buy either make an offer before auction or wait until Auction Day.
· Ask the agent for a copy of "How to Bid".
· You can appoint a person in writing to act on your behalf.
· The Agent and Auctioneer are available to answer your questions.

Can I buy the property before the Day of Auction?

You can make an offer prior to the Day of Auction. The seller may or may not accept your offer. However, if you are able to make your offer in the form of a cash unconditional contract, the seller may consider your offer.

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How do I know how much to offer?

The salesperson will inform you of recent sales in the area. You should inspect the property and carefully compare it with others on the market. Decide on a price you are comfortable with and then go to paper with a cash unconditional offer.

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What are the Terms and Conditions of Sale?

These are the rules by which the Auctioneer conducts the sale. If you wait until the Day of the Auction to buy you will be competing with other buyers for the property. The Terms and Conditions of Sale ensure that every buyer and seller is treated fairly. Ask your agent for a copy.

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I would like to buy the property at auction. I need to arrange finance?

You can obtain a pre approval for a loan from your financial institution. This should be in writing and specify that you can sign a cash contract under auction conditions. Under auction conditions you should also have a bank cheque or deposit bond for 10% deposit of the sale price.

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When is the reserve price set on the property?

The seller notifies the Agent and Auctioneer the price they will accept in writing the day before the auction, the price is based on market trends.

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How is it that some properties do not sell?

It is true that not all properties sell on the Auction Day. You need to understand that sales can occur at any time during the Auction Program. It is not uncommon for a seller to receive and accept an offer before the auction Day, if the price is right. Most do sell on auction day and many sell just after the auction.

You must remember it is the market that establishes the price of the property. The best way to discover what people are prepared to pay is to allow them to compete openly against each other. If it does not sell at the top bid, it allows for negotiation after the auction.

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