Auctions
Probably the most confusing part of the whole process. The litres of sweat I've lost while losing auctions… 😰
Before the auction
Find a conveyancer
Look at their reviews, experience and always look locally as conveyancing differs per state. Get in contact and tell them you are bidding soon.
Find a conveyancer
Look at their reviews, experience and always look locally as conveyancing differs per state. Get in contact and tell them you are bidding soon.
Make sure your finances are approved
Conditional or unconditional
Make sure your finances are approved
Conditional or unconditional
Homeloanexperts has a decent article breaking down finance approvals
Homeloanexperts has a decent article breaking down finance approvals
Organise your building and pest inspection
Auctions are unconditional if over the seller's reserve price. This means there'll be no option to pull out after winning if you find a problem in the Building and Pest.
Organise your building and pest inspection
Auctions are unconditional if over the seller's reserve price. This means there'll be no option to pull out after winning if you find a problem in the Building and Pest.
Building & Pest inspections are expensive. To reduce the cost, you can often ask the selling agent if anyone else wants to do a building and pest, then you can organise the same inspector do give you both reports at discounted prices.
Building & Pest inspections are expensive. To reduce the cost, you can often ask the selling agent if anyone else wants to do a building and pest, then you can organise the same inspector do give you both reports at discounted prices.
Make sure your building inspector uses a thermal imaging camera
These help detect water damage
Make sure your building inspector uses a thermal imaging camera
These help detect water damage
If applicable order a Strata report
This will tell you about the owners corporation meetings, account balance and works done in the past
If applicable order a Strata report
This will tell you about the owners corporation meetings, account balance and works done in the past
This will also avoid you getting spooked by any special levys.
This will also avoid you getting spooked by any special levys.
There are some sites that provide older strata reports for cheaper or free
There are some sites that provide older strata reports for cheaper or free
If you are seriously interested, you can ask the agent if they'll take early offers
I have seen many times where Auctions have been cancelled due to a good early offer coming in.
If you are seriously interested, you can ask the agent if they'll take early offers
I have seen many times where Auctions have been cancelled due to a good early offer coming in.
Auction time!
Bid at the Auction
There are various point at the auction that you should listen for. It's also worth thinking about your auction strategy before hand.
Bid at the Auction
There are various point at the auction that you should listen for. It's also worth thinking about your auction strategy before hand.
Remember, there is no perfect strategy at an Auction. Some will work better than others but in the end of the day it comes down to who's willing to spend more
Remember, there is no perfect strategy at an Auction. Some will work better than others but in the end of the day it comes down to who's willing to spend more
Vendor's bid: If you hear this and you are the highest bidder, do not bid again. If there is no further bid, you will still be taken in as the highest bidder to negotiate.
Vendor's bid: If you hear this and you are the highest bidder, do not bid again. If there is no further bid, you will still be taken in as the highest bidder to negotiate.
On the market: The vendor's reserve price is met and any winning offer will unconditionally take the property
On the market: The vendor's reserve price is met and any winning offer will unconditionally take the property
If the auction passes in and you were the highest bidder
Time to negotiate
If the auction passes in, you can negotiate conditions such as building and pest clauses or for things to be fixed, as well as price.
Time to negotiate
If the auction passes in, you can negotiate conditions such as building and pest clauses or for things to be fixed, as well as price.
After auction
Agree on a settlement day
This is usually 30 / 60 / 90 days from the signed contract. This is the date your bank will send all the funds to the conveyancer's trust and you will pay any balance owing.
Agree on a settlement day
This is usually 30 / 60 / 90 days from the signed contract. This is the date your bank will send all the funds to the conveyancer's trust and you will pay any balance owing.
Sign the contract
The agent will prepare you the contract with your conditions in it as well as all relevant details. Make sure to check these are correct.
Sign the contract
The agent will prepare you the contract with your conditions in it as well as all relevant details. Make sure to check these are correct.
Pay the deposit
You will usually pay this into the trust account of the agent or the trust of the sellers legal representative.
Pay the deposit
You will usually pay this into the trust account of the agent or the trust of the sellers legal representative.
You can organise to pay the deposit in installments or in parts by a date set out in the contract
You can organise to pay the deposit in installments or in parts by a date set out in the contract
Send the contract to your conveyancer
They will ensure your contract is ok and all conditional clauses you may want to put in are included.
Send the contract to your conveyancer
They will ensure your contract is ok and all conditional clauses you may want to put in are included.
Give you banker/Mortgage broker the contact for your conveyancer
They will handle almost everything from this point onwards.
Give you banker/Mortgage broker the contact for your conveyancer
They will handle almost everything from this point onwards.