Purchase at auction
• Ensure you are prepared to bid—have your deposit organised (cheque, bank cheque or deposit bond), finance organised, the contract checked, settlement time agreed and price estimates set.
• Be confident, you want to buy so make a good effort, no point being timid, show that you are determined.
• When bidding you can either nominate the bid you desire verbally, using hand motions or following the auctioneers lead.
• Check out a few auctions in the Locality, you will see a variety of styles from auctioneers, so be prepared for the event.
• The auctioneer will make it very clear how bidding is progressing, if you are unsure of the status don’t hesitate to seek clarification particularly if you are unsure if the reserve price has been reached, but remember when that hammer falls the property is sold—but don’t worry we give you plenty of time.
• If a property fails to reach the reserve price, the auctioneer will ‘pass the property in’ to the highest bidder. Negotiations will commence with the highest bidder immediately and a sale often eventuates, so it is essential to ensure that you are the highest bidder. If negotiations do not conclude in a sale, negotiations can then be opened to other bidders.
• If you are successful you will need to sign the contract and pay the deposit immediately following the auction, so check that all contract details and conditions are covered.
• Often interested buyers are unable to attend an auction of a property they hope to purchase, if this happens to you, don’t worry it is easily fixed. All you need is a friend or relative to bid on your behalf. You will give them a limited authority to bid and sign the contract on your behalf and they will have either a set limit to go to or you can instruct them over a mobile phone, but remember you will need to have the deposit organised in advance and have a written authority to hand to the auctioneer.
Purchase prior to auction
• Many properties are Sold prior to their scheduled auction date. Don’t get caught out by missing this buying opportunity, make sure the agent is aware of your interest, don’t play it so cool that you miss out. Request that the agent notifies you if the vendor will be considering pre-auction bids and if so you would like to be involved in such negotiations.
• Check all details and conditions as normal, take the contract to your solicitor, do your inspection as you see fit, ensure that your finance is approved and that you can act immediately you get the go ahead.
• Any offer submitted prior to auction will only be considered if you can prove that you will be in a position to proceed to an exchange of contracts within 24 hours of acceptance.