Buying At Auction

Buying at auction can be a nerve-racking experience so it's a good idea to familiarize yourself with the process by attending an auction or two as a spectator.

It is important to have your solicitor or conveyancer examine the sale contract before the auction to make sure that everything is in order.

It is also important to have your finance arranged and make all the necessary quality inspections before you attend the auction.

Take the time to find out what prices properties in the area have sold for, so you can have a guide for the market value of the home you want.

Before auctioning a property, the seller will nominate a reserve price, which is usually not told to the interested buyers.

The reserve price is the lowest price that the seller is willing to accept.

If the highest bid is below this price, the property will be passed in. The seller will then either try and negotiate a price with interested parties or put the property back on the market.

If you want someone else to bid on your behalf, they must give the auctioneer a written authority from you, before the auction starts.

Remember there is no five-day cooling off period if you purchase under auction conditions.