An auction can be tricky to navigate and that is why pre-planning is essential. Ensure you are comfortable with the bidding process, set yourself a limit, avoid entering personal bidding wars — and take your chequebook with you!
In some areas, auctions are the most popular method of sale, and there is a chance that you can secure a property at a good price where there is low interest or competition from other bidders.
You can also make pre-auction offers to the owner through their Century 21 real estate agent. Whether or not your offer is acceptable to the owner will depend on a variety of factors - so it will help do your research about how competitive the local property market is.
You will need to register your bid on (or before) the auction day to participate as a bidder.
Most sellers will have set a reserve price - the lowest price that they are willing to accept for the property. If no bids are made at or over this reserve price, the property may be passed in. In the event that a property is passed in, you may have an opportunity to negotiate a sale with the owner.
Some contracts of sale allow part of the deposit to be paid at the end of the auction, with the balance payable on a specific date. Always check the contract of sale before you bid to ensure that you have the necessary funds to secure a property before you bid.
Unlike private treaty sales, properties sold by auction have no cooling-off period, and you cannot negotiate the conditions of sale. That means you need to complete any due diligence inspections prior to auction day and have your deposit cheque ready at the time of sale.
