BUYING AT AUCTION
If the highest bid is accepted by the seller a sale occurs on the fall of the hammer. The buyer is required to sign the Contract and to pay the deposit at the conclusion of the auction.
The seller also signs the Contract and the exchange of contracts takes place immediately. Remember, there is no “cooling off” period at an auction and you are committing to buy.The property will be passed in if the highest bid does not meet the seller’s reserve price.
Preparation & The Auction Process
As with a private treaty sale, you need to be informed about The Central Coasts property prices. See The Buying Process.
Ask for a copy of the contract and obtain advice from your solicitor or a conveyancer. They will review the terms and conditions of the Contract of Sale.
If you are interested in the property, let the selling agent know – you may want to consider making an offer prior to the auction.
Put the finance wheels in motion well ahead of the auction to ensure you will have finance available if yours is the successful bid.
Seek the advice of your solicitor or conveyancer about the necessity of reports like building and pest inspections, surveys and strata searches prior to the auction. These checks can identify problems with the property that can be costly to rectify, but they will cost you money to obtain and you may not be the winning bidder.
Attend auctions while you are in the research and ‘looking’ phase to familiarise yourself with the auction process.
You will need to provide proof of identity on auction day to register as a bidder. The Office of Fair Trading Bidder’s Guide details the requirements.
All bidders must display their registration number when making a bid – the auctioneer cannot accept a bid from someone who is not registered.
Know your price range and set an absolute limit!
Ensure you have your chequebook with you. If you are the successful bidder you will have to pay a deposit when you sign the contract.