Buying at Auction
To help you get prepared for the big day, we have put together this quick checklist for you.
- Register your interest with the agent before the day
- Agree to any changes to the deposit or settlement day with the Agent before the auction
- Have your solicitor check the Title, Lim Report & Auction Contract
- Get your finance fully approved for this particular property
- Arrange for a building inspection or valuation (if required) – Click here for a list of local building inspectors
- Arrange your 10% deposit
- Click here to register for Auction
Registering your interest
If you haven’t already done so, make sure you let us know that you’re interested in the property by “Registering” your interest. We can then supply you with a full Auction Pack which will include details of the property and contains such things as the Auction Terms & Conditions, the Title & LIM (Land Information Memorandum) Report for the property, and any other pertinent information available. It pays to get this information as soon as you can, as sometimes properties are sold prior to the initially advertised date. If you’ve registered your interest you’ll be kept informed should the auction be brought forward.
Arranging your finance
Ensure your finance is in place (know your top limit!) and that you are in a position to pay the standard 10% deposit immediately after the auction if you are the successful bidder. The deposit is by electronic bank transfer to the Trust Account of the Real Estate Firm handling the sale. Let us know how you intend to pay the deposit, or if you foresee any difficulty meeting these requirements.
Pre-Auction Offers
Some owners may consider selling before auction day, some may not. If you do consider putting in a pre-auction offer, the offer must be unconditional and is presented to the vendor for consideration with a deposit of 10% of the purchase price. If the offer is deemed to be at an acceptable level then all other interested parties are contacted and advised that an acceptable offer has been received by the Vendor and the auction will be bought forward. These parties are advised of the new date and time of the auction. The amount of the offer is not disclosed at this time. At the auction, the opening offer will be the amount of the pre-auction offer and all interested parties will have the opportunity to bid above this level.
Bidding at Auction
Can you attend the Auction in person? If not, you can also bid by telephone or through a third party, but this needs to be arranged in advance. If you are buying the property in conjunction with another person, we recommend that both of you attend the Auction, but if that’s not possible, try and ensure that you can at least be in telephone contact with each other whilst the auction is in progress.
Plan your bidding strategy in advance
Auctions can move fairly swiftly so it pays to be well prepared beforehand. If you are buying in conjunction with another person, decide who will do the bidding, or whether you’d prefer one of our team or another 3rd party to bid for you. We can also offer advice and a few tips that may be to your advantage on auction day.
© Anita Dobson & Kieran Barakat, Harcourts – 021 337 093