Auction - A buyer's guide

With a variety of properties being sold at public auction, it is important to be prepared so you can bid confidently and do not feel daunted by the process. An auction can provide you with a terrific opportunity to purchase your dream home, so you need to ensure that you understand the implications and requirements of each stage.

Be prepared

Prior to bidding or making an offer, have you:

• Arranged finance?

• Organised your deposit?

• Commissioned building, pest and compliance inspections if required?

• Obtained a copy of the contract and fully understand it, or have received advice on the terms and conditions from your solicitor?

• Calculated costs, i.e. stamp duty and legal fees?

Offers prior to auction

In some cases the owner may consider an offer prior to auction. You need to be aware that any offer of this nature is made under auction conditions and if it is accepted it will require an immediate unconditional exchange of contracts prior to the property being taken off the market. Your offer will be required to be submitted in writing, on the contract document, attached with your agreed deposit and cooling-off certificate from your solicitor.

When bidding at auction, be prepared, confident and bid loud and clear.

If you wish someone to bid on your behalf, you must provide them with a signed authority prior to auction. (We can provide you with this documentation)

At the fall of the hammer

1. If the property has reached reserve price and you are the final bidder – congratulations, you have bought the property. All that is left to do now is sign the contract, pay your deposit and celebrate. Note: There is no cooling off period.

2. If the property has failed to reach reserve and you are the highest bidder, you will generally have the first right to negotiate under auction conditions (as above) with the owner and your Independent Property Group Agent.

3. If the property is passed in and immediate negotiations do not reach agreement, the property will generally be placed on the market for private treaty negotiations at a price instructed by the seller.

Auction day checklist

• Inspect: Properties are usually open a minimum of 30 minutes prior to auction, so it’s a good idea to have one final look.

• Register to bid: Ensure you bring ID. It’s a good idea to register before the start of the auction. If you are running late – don’t worry, you can register anytime up until the fall of the hammer.

• Bidding: Make sure your bidding paddle is visible to the auctioneer when you make a bid.

• Know your limit: Always ensure you bid to what you can afford. Know your maximum. Auction day can be stressful and this can stop you from getting carried away.