So you have found the right house it is being advertised within your price guide and it is going to Auction. So what is next? Here are some tips to help you get through the stress of it all –
Let the agent know that you are interest in the house and that you have all intentions of registering to bid. This allows the agent to know that you are interested in the property. Playing it cool might mean that they don’t give you second chance at the cherry if you need it. It also gives the agent the ability to have discussions with you leading up to the Auction and you may have the opportunity to put in a pre-auction offer which may or may not be accepted, however it also gives you time and knowledge.
Please speak to your broker or banker prior to the lead up to the auction, they will be able to run your numbers and give you a maximum amount you can bid for. They can also help you with a deposit bond if you require a deposit bond. Be aware that your finance is not normally unconditionally approved when you go to auction. The bank most times may require a valuation following the auction and at that time the finance will then be unconditionally approved. When bidding at auction you should be comfortable with your financial situation as once that hammer falls you are liable to complete the purchase and risk your 10% deposit if you are unable to complete.
- Pre-Purchase Inspection Reports
Prior to the auction day we recommend that you know what you are buying. Please spend the money and obtain a pest and building report. The last thing you want to do is buy a dud. You need to know if the property is what you are wanting to buy. Prepare yourself and inform yourself. There would be nothing worst then buying a house full of termites, or suffers from water damage if you thought it was all okay.
If buying a strata property also obtain a strata inspection report. This report provides information in regards to the history of the owners corporation (common property/strata property). It will confirm details in regards to what the administration levy is along with what the Capital Works Levy. It will also provide balances on both accounts. Finally it will also give you details of all works carried out and any future works expected to be undertaken and if it is expected for special levies to be raised.
Be comfortable with what you are bidding on, have the confidence that you know your financial limit. Set yourself a goal and stick to it. Your confidence will grow the more prepared you are. If you are like me and likely to go over your limit, have someone bid on your behalf, at the time of registering you can advise in writing that you are intending on having another party bid on your behalf.
Speak to On Time Conveyancing and let them know you are going to bid at auction, the staff at On Time Conveyancing will review the contract, provide you with advice and negotiate any terms that need to go into the contract prior to the auction date.
On Time Conveyancing will also provide you with details of what you are buying and confirm what you are buying suits your intentions whether it is commercial property, Residential Property, Rural or Industrial. So Don’t forget to call On Time Conveyancing on 43884174
Finally don’t forget that if you are the successful bidder on the day of auction you are locked into the purchase and are required to pay a deposit then and there. If you are the highest bidder and the hammer doesn’t fall you have the first right of refusal or are first in line to negotiate after the auction has ended. However please note that auction conditions are in place for 24 hours after the auction is called.