Tips for buying at auction
The Auction marketing system today has 3 distinct stages and it is possible to purchase a property at any time.
The property is advertised as “For sale now or by auction on (a set date)”
The time frame for this stage is usually 28 days, during which the property is advertised without a price.
This enables you to inspect the property and decide what you may be prepared to pay for it.|
Pre-purchase building inspections may be carried out during this period.
You will need to have your finance organised when buying before or at Auction so it is important to know that lending institutions will pre-approve loans so that you can bid on Auction day.
Cash offers to purchase are encouraged before Auction day, and in fact many properties are sold during this phase. (You don’t have to wait for the day of Auction.)
Stage 2: Auction Day
The property is offered for sale strictly on a cash and unconditional basis, subject to the owner’s reserve price, which is confidential.
You and other buyers are encouraged to bid for the property, and once the reserve price has been met, the property is said to be “on the market” and will be sold to the highest bidder on the day.
Making a bid at Auction is quite simple:
- To indicate that you wish to place a bid, you need to attract the attention of the Auctioneer by putting up your hand, calling out or nodding your head.
- Don’t be afraid to speak up or make sure you are seen. There is no need to be secretive; in fact it’s a good idea to let other bidders know how keen you are.
- The auctioneer will normally determine the amount by which each bid will increase, but you can nominate your own amount, which will be subject to the Auctioneer’s approval.
- You set your own limit on how much you wish to pay for the property.
- If you are the successful purchaser, you will need to sign the contract of sale and pay the deposit, which is usually 10% of the purchase price.
- If you are unsure of the bidding process, feel free to have one of our property consultants stand with you at the Auction.
If you are the successful purchaser it is in your best interest to take out a cover note to protect your interest between Auction day and the date set down for completion.
Stage 3: If the property is not sold (passed in)
If the property is not sold on Auction day, it is then available for sale by normal sale. The owner will usually nominate an asking price or a price range.
Any offers to purchase in this stage may be submitted on your terms (for example, subject to obtaining finance or the sale of your own property).
When a property is “passed in”, the Vendor will usually elect to negotiate with the highest bidder first so if you are interested in purchasing it is important that you participate in the bidding so that you don’t miss the opportunity to negotiate with the Vendor first.
Tips for sellers
open home and inspection tips
- maximise natural light by opening all curtains, blinds and doors. Looking out through sparkling clean windows helps too!
- create a welcoming atmosphere – a fire or having the heating on during the winter months is great! Turn lights and lamps on to increase the illuminative effect
- one or two well placed fragrance ‘plug-ins’ or votive candles can make your house smell wonderful!
- take your ‘larger’ pets ie cats and/or dogs out during open homes and inspections – they can distract the potential purchasers
- relaxing, background music does work – try it during your open homes
presenting your home
- first impressions count – clean up the external entry area, wash the front door, buy a new doormat, remove cobwebs from exterior lights and ensure your letterbox is secure
- as you walk around the outside of the house, use a critical eye to assess what really needs to be done apart from the minimum ‘housekeeping’ presentation items. Things to do could include: cleaning the fascias, spouting, windows, sills, flyscreens, doors and garage door; cleaning out the guttering and downpipes; removing cobwebs; repairing broken windows; repairing and/or painting fences; ensuring external lighting is working; cleaning birdbaths and fountains; tidying the garden by removing fallen/dead leaves and rubbish (a new layer of mulch works a treat); trim edges and mow your lawn regularly. Clean and tidy outdoor entertaining areas; remove dog toys from the back lawn (and doggie droppings as well!) and store the kids bikes in the garage. If you have a pool, ensure it is at its dazzling best – all year ’round!
- on the inside there are a lot of little things you can do ‘presentation-wise’ : steam-cleaning the carpets gives them new life while removing household clutter creates the impression of space. Don’t have any squeaking doors or ‘catching’ curtain tracks; clean exhaust fans, range hoods, fireplaces and appliances which are ‘on show’; replace light globes and tidy cupboards. Ultra-clean tiles, grout, glass and mirrors in bathrooms really makes them sparkle. Clean all kitchen surfaces until gleaming and tidy the pantry cupboard! A vase of flowers or greenery from the garden in the centre of the dining room table is a lovely added touch!
Tips for buyers
- decide on how much you can afford to invest to purchase a property.
- confirm your affordability with your bank, lending institution or broker.
- shortlist some suburbs or areas where you would like to live; location is important in terms of transport, schools, shops etc.
- think about the style of home, and the accommodation you ideally need.
- start to research the market by reading your local Real Estate Guide.
- spend time looking at properties that suit your requirements on the major websites which include www.charlottepeterswald.com.au www.realestate.com.au and www.domain.com.au
- attend open homes in your chosen areas.
- getting to know one of our property consultants will help guide you through the buying process and keep you updated with new properties as they come onto the market.
- when you find a suitable property, be prepared to put your offer in writing. Offers may be unconditional, subject to finance, subject to the sale of your existing property or subject to a satisfactory building inspection. Our professional property consultants will be pleased to assist you with all aspects of this procedure and you may also seek the advice of your own solicitor to approve any documents before you sign.
- settlement is normally 30 days from the acceptance of your offer, but this may be varied to suit either your own or the vendor’s particular requirements.
- once you have made your purchase you will need a solicitor to provide conveyancing services. This will include title and local Council searches. They will advise you of the final amount required to finalise the purchase and prepare all documentation for the final transfer and settlement.