How to buy at Auction
Before Auction day:
- Speak to the real estate agent who is looking after the sale of the property you wish to buy. Tell them you will be attending the auction and ask them to advise you of the relevant legislative and financial requirements.
- Obtain a copy of the contract of sale prior to auction day so you can ask your solicitor to review it. It is important to check the settlement date, the minimum deposit required, as well as the inclusions and exclusions of the property. This way you can go ahead and bid with confidence.
- Make sure you have pre-arranged finance in place, this will help you to bid within your means. You will be able to obtain a pre-approval letter from your financial institution so you will know exactly how high you can bid to. Remember, it will cost you an enormous amount of money to break the contract if you do not have the finance to complete it.
- It can be worthwhile attending other auctions so you get a feel for how the process works. Try to go to an auction that is being held by the same real estate agency representing the sale of the property you want to buy. They are likely to use the same auctioneer and it will give you a feel of the pace and style to expect.
- Make sure you have conducted all the necessary checks on the property, such as building and pest inspections or a strata report if you are buying an apartment. Buying at auction is unconditional, which means there is no “cooling off period” if you change your mind or find a fault with the home.
- Make sure you are able to pay a 10% deposit (typically) on the day of the auction if you are the successful bidder.
On Auction day:
- If you intend to bid at the auction, you will be required to register. Registrations can be made in our office at any stage before the auction, or on auction day prior to the bidding commencing.
- To register, you will need to provide photographic proof of your identity in the form of a Government issued card (Driver's licence, learners permit, proof of age etc.)
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The Auctioneer may bid on behalf of the Seller and when this happen it will be announced by the Auctioneer. -
It is illegal to make dummy bids at an auctionand offenders may be prosecuted and fined.
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If you are the successful bidder, you must sign the contract of sale contract and pay a deposit to the agent on the spot.
What if I can't attend the Auction?
- If you are unable to attend the auction day, you may choose to try to negotiate a sale prior. This is something you can discuss with the selling agent. Should the seller agree to sell the property before auction day, they generally do so under "auction conditions". Please be sure to talk with your solicitor and agent about the options available to you.
- Alternatively, you may decide to elect a representative to bid on your behalf on the auction day. This person will require a letter of authority from you to allow them to bid on your behalf. The letter will need to state the name of the person bidding, their address and the number of the identification (eg. drivers licence number).