Be Auction Ready
The Auction Series
Auction Rules Disclaimer: familiarise yourself with the auction rules specific to your bidding state. Refer to the relevant agents and the representative consumer body in the state for a complete understanding of the rules in buying property at auction.
Auctions: Final and Binding
Auctions are legally binding and unconditional. Essentially, you can not retract your bid based on building and pest reports or if you realise you’ve exceeded your budget. Be prepared and have your conveyancer review the contract beforehand.
Deposit and Finance.
Sort out your finances in advance. Obtain pre-approval and understand the required deposit. If you wish to propose a different deposit, have a conversation with the agent prior to the day of the auction to understand the flexibility of the terms. Discuss how to access funds with your lender/broker and the agent. If your finance falls through, you’re likely to lose your deposit.
Property Inspection
Inspect the property again on the day before the auction. Ideally, you should have inspected it multiple times before this point. If you prefer a private inspection for a thorough evaluation, request it from the agent. Take your time, as this significant purchase requires more than a standard half-hour inspection.
Bidding on Behalf of Someone Else? If bidding on behalf of another party, prepare an 'authority to bid' letter. This document confirms your authorisation to bid and should be signed by both parties. If you become the winning bidder, you will complete the paperwork as the nominee of the buyer, facilitated by the agent, provided you have discussed your role with them before the auction.
On the Day of the Auction:
Arrive early and attend the pre inspection.
Register to bid if required (check your state)
Stay calm and know your limits.
Remember, being well-informed and prepared is essential for a successful auction experience.