Things You Need to Know Before You Bid at Auction

Things You Need to Know Before You Bid at AuctionLaws 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.

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