Success At Auctions

With anything new, fear of the unknown can be intimidating. That is why it is important to familiarise yourself with the auction process by attending as many auctions as is convenient well before the auction of the property you would like to purchase. Studying auctions beforehand and learning the ‘tricks of the trade’ can be great preparation for the real auction.

Finance

If you are the successful bidder, then you become the proud owner of that property once the hammer falls. Therefore before you raise your hand at an auction, arrange for finance pre-approval. Our accredited mortgage consultants can advise you of how much you can borrow which will assist you with determining your firm and final biding limit, which you should always stick to.

Legal Documents

Before attending the auction, ask the vendor for a copy of the contract and any other statutory documentation. It is important to understand the terms and conditions of the sale and it is highly recommended that you consult a solicitor or conveyancer to review the contract.

Deposit

Ensure you have the required deposit available on the day as you will be required to pay a 10 per cent deposit and there is no cooling off period. In some cases, you can negotiate the amount you are prepared to deposit prior to the auction with the vendor. If your deposit is not available, then you could consider using a deposit bond.

Inspections

Consideration of the conditions of the contract is required. Often finance, building inspections, pest inspections, land surveys, etc, need to be arranged prior to the auction, as the contracts often restrict what can be done after the auction.

Before Auction Checklist

• FAMILIARISE yourself with auction process
• Organise your FINANCE and decide on your final biding limit
• Arrange for solicitor or conveyancer to check the CONTRACT
• Prepare your DEPOSIT
• Complete building and pest INSPECTIONS

After Auction

If your hand was the last hand raised before the fall of the hammer, then you will need to arrange the following:

• Insurance: Building insurance may be required immediately. Contact your Insurer as soon as possible as you may become liable for the insured risk on the property.
• Deposit: The deposit is often required within 24 hours. In the case of using a Deposit Bond, you will need to provide the Guarantee Certificate.
• Finance: Assuming you have a pre-approval, all you will need to do is forward a copy of the contract and deposit receipt to your First Choice consultant so that final approvals can be obtained.
• Solicitor or Conveyancer: Contact your solicitor or conveyancer to finalise all necessary paper work for settlement.

For further assistance contact us on 1800 111 455.