Buying
Investor
Buying at Auction
11-Jul-2017
With auction being such a popular and successful sale method, the Newton team have put together the ins and outs as well as a few hot tips and the 7 most critical points you need to know about buying at auction.
In order to buy at auction you must make a bid
• Bidders must show their identification number when making a bid to be identified as a registered bidder
• The auctioneer will call for an opening bid. Don’t be shy, show you mean business and bid hard as you have nothing to lose
• The auctioneer will set the pace of the auction and the bids they are prepared to accept
• If you are unable to attend the auction or feel nervous, you can authorise someone to bid on your behalf and sign the contract as well. You do not need power of attorney to do this but seek advice from your solicitor as to the best way to proceed. Contact your agent for the necessary forms
• If your bid is the highest bid taken by the auctioneer and is above the vendor’s reserve price you will purchase the property. The auctioneer will clearly announce when the property is and going to be sold.
• On the third call the hammer will fall and the property will be sold
• If your bid is the highest bid taken by the auctioneer but hasn’t reached the vendor’s reserve price then the property will be passed in. You, as the highest bidder, will have the first opportunity to offer to buy the property
• If the property is passed in on a vendor bid, then the vendor via the vendor’s agent is at liberty to discuss the purchase of the property with any genuine buyers
Hot tips
• Make it known that you’re interested
• Have your finance pre-approved
• Have the contract checked by your solicitor/conveyancer
• Do your due diligence including pest and building inspection and or strata report
• Bid with confidence and know your limits
• Have a go and have fun, be positive and be confident
Your agent is there to help you buy the property. If you are buying or selling at auction, we are more than happy to answer any questions you may have that will help you feel more confident with the auction process and in securing your new home.
The 7 most critical points
1. The highest bidder will be the purchaser subject to any reserve price
2. In the event of a disputed bid, the auctioneer is the sole arbitrator and their decision is final
3. A bidder must be registered to bid. The auctioneer cannot accept a bid from an unregistered person
4. At the fall of the hammer, the purchaser is to sign the contract and pay the required deposit
5. The auctioneer reserves the right to make one bid, and only one bid, on behalf of the vendor
6. The auctioneer may refuse to accept any bid that in their opinion is not in the best interest of the seller
7. A bidder is taken to be a principal unless before bidding the bidder has given the auctioneer a copy of a written authority to bid for or on behalf of another person.
If you have any other questions relating to real estate or wish to obtain a current market appraisal on your home, please let your agent know or contact the Newton team on 9524 0777.
In order to buy at auction you must make a bid
• Bidders must show their identification number when making a bid to be identified as a registered bidder
• The auctioneer will call for an opening bid. Don’t be shy, show you mean business and bid hard as you have nothing to lose
• The auctioneer will set the pace of the auction and the bids they are prepared to accept
• If you are unable to attend the auction or feel nervous, you can authorise someone to bid on your behalf and sign the contract as well. You do not need power of attorney to do this but seek advice from your solicitor as to the best way to proceed. Contact your agent for the necessary forms
• If your bid is the highest bid taken by the auctioneer and is above the vendor’s reserve price you will purchase the property. The auctioneer will clearly announce when the property is and going to be sold.
• On the third call the hammer will fall and the property will be sold
• If your bid is the highest bid taken by the auctioneer but hasn’t reached the vendor’s reserve price then the property will be passed in. You, as the highest bidder, will have the first opportunity to offer to buy the property
• If the property is passed in on a vendor bid, then the vendor via the vendor’s agent is at liberty to discuss the purchase of the property with any genuine buyers
Hot tips
• Make it known that you’re interested
• Have your finance pre-approved
• Have the contract checked by your solicitor/conveyancer
• Do your due diligence including pest and building inspection and or strata report
• Bid with confidence and know your limits
• Have a go and have fun, be positive and be confident
Your agent is there to help you buy the property. If you are buying or selling at auction, we are more than happy to answer any questions you may have that will help you feel more confident with the auction process and in securing your new home.
The 7 most critical points
1. The highest bidder will be the purchaser subject to any reserve price
2. In the event of a disputed bid, the auctioneer is the sole arbitrator and their decision is final
3. A bidder must be registered to bid. The auctioneer cannot accept a bid from an unregistered person
4. At the fall of the hammer, the purchaser is to sign the contract and pay the required deposit
5. The auctioneer reserves the right to make one bid, and only one bid, on behalf of the vendor
6. The auctioneer may refuse to accept any bid that in their opinion is not in the best interest of the seller
7. A bidder is taken to be a principal unless before bidding the bidder has given the auctioneer a copy of a written authority to bid for or on behalf of another person.
If you have any other questions relating to real estate or wish to obtain a current market appraisal on your home, please let your agent know or contact the Newton team on 9524 0777.