You have found your dream home and you want to buy, the only issue is that it’s going to auction!

What does this mean and how do you prepare yourself?

• When a property is going to auction quite often the vendor will not accept any offers prior to the auction
• This means you need to be prepared to bid on the auction day
• If they will accept offers prior to the auction date this will normally mean that you need to have full finance approval and have exchanged contracts prior to the auction date
• If we cannot achieve this they will normally still hold the auction
• real estate agents use auctions as a way of bringing buyers to the market, it can also be away to get a true value of a property, some properties are so unique that there are only worth what somebody is willing to pay for it and this value cannot be determined by looking at other figures

How to get auction ready

1. You need to get your finance pre-approved prior going to auction. If you buy at auction this is an unconditional contract at the hit of the hammer
2. Your finance would be pre-approved subject to the valuation, if you feel that there could be issues with the valuation we will need to talk about this
3. You need to get your solicitor to look at the listing contract prior to going to auction. They will let you know if there is any issues with the contract or anything you should be concerned about
4. You need to have already had the building and pest report completed, once that hammer has hit on the auction day it’s too late to raise issues with the building and pest report this needs to be done prior to going to the auction or auction day
5. You need to have your deposit ready, standard deposit is 10% in cash. If you are asking for anything outside of these terms it needs to be approved with the vendor prior to the auction day
6. You need to have a good understanding of how much you want to pay for that property and have a strategy ready, you don’t want to get caught up on auction day offering more than you can afford in a bidding war with somebody
7. You need to turn up at the auction day and register as a bidder so then you are able to put bids in for the property

There are a lot of steps in the auction process and in the Northern Rivers, Byron Bay and Ballina a lot more properties are going for auction these days. You need to make sure you are getting everything organised as early as possible and talking to us to make sure that you are in the right position. If you have any more questions please let us know

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