Ex­plain­ing the auc­tion process for buy­ers

Whitsunday Times - - DOMAIN -

FROM a buyer’s point of view, open houses and in­spec­tions by ap­point­ment are the best time to make en­quiries, get a copy of the Con­tract of Sale, take a good look around the house and clar­ify small par­tic­u­lars (such as is the dish­washer in­cluded in the sale, and in the case of a rental property, do fit­tings such as cur­tains be­long to the ten­ant or the land­lord?)

It is also the time when build­ing and pest in­spec­tions should be con­ducted. A re­minder though – in­spec­tions can only be held at the per­mis­sion of the cur­rent own­ers and are done so at the buyer’s own cost.

Al­though in­spec­tions are an additional cost, the Real Es­tate In­sti­tute of Queens­land (REIQ) rec­om­mends buy­ers se­ri­ously con­sider ob­tain­ing in­spec­tion re­ports, as prop­er­ties sold un­der the ham­mer are un­con­di­tional.

“It’s im­por­tant to ar­rive early on auc­tion day. This gives the buyer the chance to make sure there are no late changes to the con­tract and get them­selves ready to bid. Govern­ment reg­u­la­tion re­quires all bid­ders show photo iden­ti­fi­ca­tion and reg­is­ter with the auc­tion­eer. Reg­is­tered bid­ders will then be given a bid­der iden­ti­fier, such as a pad­dle, to be used dur­ing the auc­tion,” REIQ man­ag­ing di­rec­tor Dan Molloy said.

The auc­tion will be­gin with the auc­tion­eer read­ing the de­tails of the property con­tained in the Con­tract of Sale and will also read the Con­di­tions of Sale by auc­tion. Then the auc­tion­eer will call for bids.

Buy­ers should raise their pad­dle to make a bid, and call out a bid if they want to move a bid by larger or smaller amounts. A good tip is to stand where you have a good view of other bid­ders and the auc­tion­eer.

It is im­por­tant that buy­ers know their high­est price range be­fore the bid­ding com­mences and do not get car­ried away with the mo­ment. If the buyer suc­ceeds at auc­tion, they must be pre­pared to sign a con­tract of sale im­me­di­ately and put down the pre­scribed de­posit.

If the re­serve price has not been reached dur­ing the course of the bid­ding and the property is passed in for sale by ne­go­ti­a­tion, bid­ders may still be able to ne­go­ti­ate to buy the property.

If you’re think­ing of buy­ing or sell­ing a property make sure you choose a REIQ ac­cred­ited agency.

“It is im­por­tant for con­sumers to be aware that not all real es­tate agents are REIQ ac­cred­ited agencies. The REIQ ac­cred­ited agency logo is dis­played in the front win­dow of ac­cred­ited agencies and serves as a vis­ual safe­guard to help con­sumers make in­formed and con­fi­dent choices,” Mr Molloy said.

Newspapers in English

Newspapers from Australia

© PressReader. All rights reserved.