KNOW THE DIFFERENCE- PRIVATE TREATY VS AUCTIONThe auction process is a very different method of sale compared to a private treaty. The main difference is when you buy at auction there is no cooling off period afterwards. This means if you are the successful bidder you must settle the contract even if the property doesn’t pass inspections i.e. Building & Pest Inspection, you change your mind or can’t afford it. It is also an unconditional sale which means no conditions can be can be added i.e. Subject to Finance etc.
ATTEND OTHER AUCTIONSDon’t go into your auction blind. If you’re thinking of purchasing at auction get a feel for the environment and attend some other auctions to understand how they work. There are a lot of scenarios that can occur at auction so do your research and attend multiple auctions.
GET FINANCE IN CHECKMake sure your finances are in order and you have an agreed maximum purchase price. If you are the successful bidder you will be required to pay the deposit straight away so make sure you are ready to go. If you’re a first time buyer it is a good idea to talk to your bank or mortgage broker. They can show you the ropes and help determine how much you can afford. It’s also essential to make sure you have pre-approval for your loan. By getting this you can go into the Auction and be confident that you have a loan ready to go.
COMPLETE ALL NECESSARY CHECKSConduct all inspections and checks before auction day to ensure the building is sound. If you are serious about buying the property it is recommended to get a building and pest inspection as it may save you thousands in the long run. It’s also important to get a copy of the Contract of Sale and get a legal representative such as a solicitor to have a look over it to help you understand the terms and conditions.
DO MARKET RESEARCHDo some research and check recent sale prices of comparable homes as well as homes on the market in your area. If you are eager on the property it is a good idea to ask a valuer for an accurate and unbiased opinion. However, remember this is only a guide and it’s up to you how much you are willing to pay for the property.
TALK TO THE AGENT & PRE REGISTER TO BIDIf you are interested in a property make sure you keep in contact with your agent. There is nothing worse than seeing a sold sticker on the property prior to auction. Your agent will keep you in the loop if you are generally interested. If you’re wanting to bid on the day you will need to register. Now you can do that on the day but to save the mad rush it’s a good idea to pre-register. Talk to your agent to find out how to do this.
TRENT QUINN – LICENSED REAL ESTATE AGENT & AUCTIONEER
0401 907 878
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