Moving to Australia: property auctions
31 August 2016 by News DeskMoving to Australia: when buying at auction it pays to be prepared, especially if you aim to win a bargain.
Moving to Australia: Before the auction attend as many events as you can so you are familiar with the process before bidding for the property you want to buy.
This will help you to feel more confident when it comes to bid on the property you want.
If you don’t feel confident in bidding yourself, you could ask a friend or relative to bid for you, or you could use a professional buying agent.
Ask the real estate agent a few days before the auction what the requirements are for having someone else bid for you. Make sure the person who’s bidding on your behalf knows your maximum bid.
Know the market value and set a price limit. But don’t give away your maximum price: you may be able to buy for less if you bid well.
Have property inspections completed and have a solicitor check the contract to ensure you understand what you’re getting. There’s no cooling off period after an auction so you can’t change your mind.
Ensure you have finance pre-approved as you’re legally bound to buy if yours is the winning bid at auction. Right after the auction you will be asked to sign and exchange the contract and provide a cheque for the deposit amount. The deposit is usually 10%. Ensure you attend auction with your cheque in case you are the successful bidder.
Moving to Australia: property auctions
On the day of the auction, arrive early so you can prepare yourself. If the auction is on site take another look around and ask the agent any final questions. You’ll need to register to bid before the auction. Be prepared to provide proof of identification such as a driver’s license.
Auction Bidding
To start the auction, the auctioneer will ask for an opening bid. It’s up to you whether you’d like to get things started or wait for someone else to jump in first. A strong opening bid can intimidate other bidders but don’t bid too close to your maximum straight away or you might find yourself quickly out of contention.
If no one offers an opening bid, the auctioneer may nominate a vendor bid to get the auction going.
Once the bidding is underway the auctioneer will encourage further bidding and will try to keep things moving.
When Bidding – bid confidently and do not feel pressured. Strong bidding may put your opponents off and lead them to stop bidding sooner.
Don’t be afraid to bid in small lots and draw out the process, especially if there are few bidders competing. Doing this may put pressure on the vendor to lower their reserve price.
Keep within your financial limit and don’t bid more than you can afford.
Bidding continues until the price has reached a point where no one is prepared to go any higher. If the property has reached its reserve price (a minimum sale price set before the auction by the seller) the property will be sold. If it has not reached that level it will be passed in.
If the property is passed in, further negotiations will start immediately. The seller usually gives the highest bidder the first right to negotiate so it may still work in your favour to be the highest bidder.
Moving to Australia? For expert info and help with buying property in Australia, Click Here
Want to live and work Down Under? Click here for expert help: Skilled Migration to Australia
Want to get a job Down Under? Click here for expert help: How to Get a Job in Australia
Click here for expert help with travel visas: Travel Visas to Australia
Click here for tourist information about Australia: Visit Australia
