WHAT IS AN AUCTION?

Buying a property at auction can be an exciting opportunity to acquire real estate at a potentially favorable price. It can also be a complex process that requires careful planning and strategy.

A buyer’s agent can assist you throughout the auction process, offering valuable expertise and support.

We have listed the things that you need to know about buying at auction and how a buyer’s agent can help.

HOW CAN WE HELP?

  1. Research – Conduct thorough research on the properties available for auction. Review the auction catalog or website to gather information about the properties, including location, size, condition, and any special terms or conditions of sale. A buyer’s agent can assist in analyzing the properties, estimating their value, and identifying any potential issues or risks.
  2. Property Inspection – Attend any scheduled property inspections or open houses to examine the properties in person. Assess their condition, potential repairs or renovations required, and any other factors that may affect their value or your decision to bid. A buyer’s agent can accompany you during these inspections and provide professional insights.
  3. Financing – Arrange your financing in advance. Many auctions require buyers to have their finances in order before participating. Speak with a mortgage lender to secure pre-approval or ensure you have funds available if you plan to purchase the property with cash. A buyer’s agent can help you navigate the financing process and provide recommendations for reputable lenders.
  4. Legal Due Diligence – Conduct thorough due diligence on the properties. Review the legal documents, such as title deeds, survey reports, zoning restrictions, and any other relevant information. It’s advisable to consult with a real estate attorney or conveyancer to ensure you understand the legal aspects and potential risks involved. A buyer’s agent can recommend professionals for this purpose.
  5. Set a Budget – Determine your budget and stick to it. Set a maximum bid amount based on your financial capacity and the property’s value. Consider additional costs such as auction fees, legal fees, inspections, and potential repairs or renovations. A buyer’s agent can assist in assessing these costs and ensuring you have a realistic budget.
  6. Auction Registration – Register for the auction before bidding begins. Provide the necessary documentation and identification as required by the auctioneer. Understand the auction rules and procedures, including any deposit requirements or buyer’s premiums. A buyer’s agent can handle the registration process and ensure you meet all requirements.
  7. Bidding Strategy – Develop a bidding strategy based on your budget, market conditions, and your desired property. Decide on your starting bid and the increments by which you will increase your bids. A buyer’s agent can help you formulate an effective bidding strategy and provide insights into the auction dynamics.
  8. Auction Day – On the auction day, arrive early and be prepared. Listen carefully to the auctioneer’s instructions and bidding increments. Stay focused and avoid getting caught up in the excitement of the bidding process. A buyer’s agent can represent you during the auction, placing bids on your behalf and employing effective bidding tactics.
  9. Winning the Auction – Ensure you have the necessary funds available to complete the transaction within the specified timeframe. A buyer’s agent can guide you through the post- auction procedures, including contract signing and deposit payment.

 

QUICK AUCTION TIPS

  1. Have your conveyancer or solicitor look over the contract prior to 01 attending auction.
  2. Request from the selling agent if a 5% deposit is acceptable on the day if you don’t a 10% deposit is the standard and needs to paid when the hammer drops.
  3. In Queensland, a auctioneer can put as many vendor bids in for the seller all the way up to the reserve price, but not above the reserve price.
  4. The auctioneer is not legally required to let Buyers know if the property is on the market or above the reserve price.
  5. There is no subject to due diligence clause is allowed on a auction contract, so the purchase is considered a cash purchase so you need to make sure that your finance is ready to go otherwise you risk being penalised financially.
  6. You must have a authority to bid, signed by yourself being the buyer if you wish to have someone bid on your behalf at Auction.
  7. On the day of the auction ask the selling agent if there has been a building and pest completed on the property as this will give you a good indication if there are serious bidders attending the auction or better yet if there has been a building and pest inspection completed and you are the only one bidding at auction this maybe a red flag.
  8. We understand that auctions are a daunting environment to purchase a property at the best of times. If you are facing a auction and you would like a professional to represent your best interests let us know we are more than happy to help.

 

 

FNQ Buyers Agent