Prior to Auction:
- Register your interest with your salesperson to ensure you are kept fully informed of all developments and if a pre-auction offer is made.
- Carry out your due diligence on the property.
- Check the contract details, settlement date, chattels, and any special conditions relating to the sale.
- Check the Certificate of Title and relevant easements (the salesperson will make this available to you).
- If you wish to obtain a LIM Report be aware these can take 10 working days or more to arrive after ordering. Most local Councils will allow you to per-use the Property File over the counter at minimal fee so you can quickly see if there are any issues to be aware of.
- Ensure you are satisfied with any building or structural matters. Obtain any Building Reports or pre purchase inspections.
- It is highly recommended you seek legal advice to peruse the above documentation and reports.
- Organise your finance and obtain pre approval. A sale at Auction is an unconditional sale. If you are the successful purchaser you will have purchased the property unconditionally and upon signing you will be required to pay a 10% deposit.
- If you wish to alter any of the standard conditions (variations are around proposed settlement) notify your salesperson, as this needs to be arranged prior to the auction.
- GST Status: Properties may be Sold as “inclusive of GST” or if the Vendor is registered for GST, “Plus GST (if any)”. We recommend you obtain advice from an Accountant and/or Solicitor regarding the GST implications.
- See our guide to Zero Rated sales elsewhere on this website
Buying before Auction Day:
Only when the Property has been advertised as available for Auction “unless Sold prior to Auction”, may you submit an offer prior to auction day. If the offer is at an acceptable level to the Vendor, all other registered buyers will be contacted and given the opportunity to submit a bid, (however your offer remains strictly confidential). Your salesperson will assist you with your offer if you wish to make a pre-auction offer.
NOW: Double check the venue, time and date of auction . You don’t want to miss out!
At the Auction:
- To comply with the Real Estate Agents Act (2008), you may be asked to register to bid. This involves completing a simple registration form but does not compel you to bid.
- For Residential Properties you will be given an approved guide for Sale & Purchase Agreements by the Real Estate Agents Authority.
- If you are unable or do not wish to attend the auction, but still would like to bid, you can arrange to bid via telephone or appoint another party to act on your behalf. This would need to be disclosed to the salesperson prior to the auction itself to enable them to arrange approval from the vendor and Auctioneer.
- Position yourself where the Auctioneer can see you; to bid you may call out or you may bid by a show of your hand or by nodding to catch the Auctioneers eye. The Auctioneer may nominate the Quantum of each bid, for example “$10,000 rises”.
- “Dummy bidders” are a thing of the past at Auctions these days. All bids from the floor are from genuine buyers. The Contract of Sale and Sale of Goods Act 1908 permits the Auctioneer to place a bid on the Vendor’s behalf in order to move the bidding towards a price level more acceptable to the Vendor. If that happens the Auctioneer is required to announce the bid “is on behalf of the Vendor”. This sometimes happens when establishing an Opening Bid or if the bids have slowed up and the top price is still below the Reserve Price.
- The Auctioneer will place the property “on the market”, once the reserve price has been achieved or exceeded and the highest bidder will be the successful purchaser.
After the Auction:
- The highest bidder signs the contract and is required to pay a 10% deposit of the purchase price (or such other amount as agreed prior to the Auction).
- If the reserve is not met, the Auctioneer will pass the property in, and all interested parties (not just the Highest Bidder) may be invited to make an offer.
One of our team members will be happy to answer any further questions you may have prior to the auction. Wishing you successful bidding!