Buying at Auction
If you are considering buying a property at auction, we recommend that you attend a number of auctions to familiarise yourself with the process and the auction atmosphere. If you are uncertain about anything relating to the auction, ask the agent who is marketing the property about it. Even people with some experience in bidding at auction can find the experience a little daunting. However with an understanding of the process much of the nervousness can be taken out. Jean or one of our team are here to assist you and stand with you at the auction for support. Of course if you just cannot attend at the time of the auction, you can authorize one of us to bid by telephone on your behalf (this would require arranging prior to the day)
Prior to the Auction satisfy yourself with the property and prepare yourself with the following steps:
- Visit your Finance Broker to ensure how much money is available to you.
- Set the figure in your mind that you are prepared to bid to. Auctions require an unconditional contract.
- Inspect the property a couple of times to ensure you are comfortable with it.
- Read the Contract of Sale the agent has prepared to familiarise yourself with it. Check with your solicitor if you are not sure.
- If you require different terms to the contract e.g. Less deposit or longer settlement, discuss it with the agent. These items can sometimes be negotiated.
- Be aware that there is no "Cooling Off" period for a property sold under the hammer.
- Have you made arrangements to pay the deposit if the property is knocked down to you?
- On the day, register and obtain a bidding number. Bidders at auction under Queensland legislation must be registered to bid.
NOTE: offers can be made prior to the auction day. Discuss this with us. Quite often buyers prefer to buy prior to auction day and wipe out the competitors.
During the Auction the auctioneer will commence by reading out the conditions of sale and details of the property. The auctioneer will ask for any questions.
You may bid by:
- Calling out a bid, responding to the auctioneer's call by nodding your head, lifting a finger or better still, holding aloft your Bidding number. Gain the auctioneers attention.
- Do not be intimidated by another bidder who may bid immediately after you. They are only trying to dominate the bidding and attempt to reduce the competition.
- If you wish to bid a figure less than the auctioneer is calling for, feel free to do so, it will probably be accepted.
- Endeavour to make sure you are the last bidder if the property is "passed in", which will ensure you have the first right to negotiate with the seller at the reserve price.
The seller will have set the reserve price with the auctioneer
Buying at auction is a logical process of interested parties competing with each other in an attempt to purchase property at market value. The person who perceives the highest value in the property will be the final bidder and most likely the new owner. So don't be afraid of bidding as the person you are bidding against is probably as nervous as you are.
After the auction If you are the successful bidder you will be required to immediately sign the contracts and pay your deposit. In most instances a personal cheque will be accepted. (Maybe you arranged prior to the auction that should you purchase the property you can have until the next business day to transfer the deposit via the bank). CONGRATULATIONS!!!
If the property has not sold and you were not the highest bidder and you are interested in the property, approach the salesperson handling the property and let them know of your interest. Perhaps you were not able to bid under the auction terms and need a finance clause. The salesperson is there to sell the property on the best terms for the seller. They will help you. You will most likely be able to submit a contract with conditions on your terms. If you have any questions, do not hesitate to ask for assistance. Jean Hamer Prime Properties representatives will be more than pleased to assist you. We do it all the time.