Buying at auction can be a nerve-racking experience so it’s a good idea to familiarise yourself with the process by attending several auctions as a spectator before you go buy.
The Savings Centre can help you arrange pre-approval of finance, by helping you find a competitive home loan package from a wide range of lenders. You should have written loan approval before the day of the auction.
INSPECT THE PROPERTY
Inspections of the property are conducted in the company of the agent who knows the features of the property and will be able to answer questions about the facilities in the local area. Viewing times are normally specified, giving everyone equal opportunity to inspect the property before the auction. However, getting an appointment for inspections at other times can generally be arranged.
GET A VALUATION
Properties are normally subject to a reserve price (unless otherwise advertised). A reserve price is the minimum price that the person selling the property will accept.
Even though the agent will not disclose the reserve price, you can get an idea of what it will be by;
- Asking the agent what similar types of properties are selling for in the area;
- Researching the prices at which similar properties in the area sold for (i.e. On the internet, in newspapers, in magazines and in other price guides)
- Receiving a valuation from the lending institution, or engaging a registered valuer to complete a formal valuation.
VIEW THE CONTRACT OF SALE
The Contract of Sale will be on display at the Auction.
Ensure you have a clear understanding of exactly what is to be included in the sale. All fittings, furniture and other items to be included should be clearly listed in the Contract.
BIDDING AT AUCTION
- All Bidders must be registered . The Auctioneer may register a person as a bidder only if the person has provided his/her name and address and satisfactory evidence of his/her identity. The Auctioneer is required to keep a register of all bidders at the auction in accordance with Queensland Government regulations.
- Bids will only be accepted from registered bidders.
- Bidders must use the numbered identifier provided by the Auctioneer to make a bid during the auction.
CLOSING THE DEAL
If you are the successful bidder, you will be required to sign the Contract of Sale and provide a deposit, usually 5% or 10% of the purchase price. You will generally be expected to have the funds available immediately.
SOLICITOR TO RECEIVE CONTRACT
Contracts will be forwarded to both the Seller and the Buyer’s Solicitor for their attention
Settlement should occur within 30 days.
For pre-approved Home Loans prior to Auction call Roger Ruhle – The Savings Center 0419 281 254
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