Laws governing the purchase of property at auction differ from those covering private treaty.
It is advisable to make sure you are in a position to bid at auction, prior to attending.
A successful highest bidder is committed to proceed with the purchase so bidders need to ensure that they are in a position to proceed.
The purchase at auction (under the hammer) is not subject to a cooling off period or building inspection, it is an unconditional contract.
Tips for preparing to bid include:
- Obtain written finance approval. This can be subject to a valuation so this may need to be done prior to the auction.
- Arrange the deposit. Check with the agent what is required. It is usually 10% and payable by cheque or bank cheque on the day.
- Undertake a pest and building report prior to the auction if the owner has not provided one. If they have, call and discuss report with the inspector.
- Have your legal representative peruse the agreement for sale and undertake due diligence.