Understanding the auction process
Consumer tips provided by REIQ
Tips for buyers
FOR buyers, there is greatly reduced competition for properties. If you understand the auction process, you can maximise this opportunity to get the best house for the best price. Have finances organised
An important part of the auction process is that the successful bidder on auction day will be required to sign the Contract of Sale and pay the required deposit on the spot. There is no cooling off period when you buy at auction in Queensland. Be prepared, do your homework Open house days and inspections by appointment are the best time to make inquiries, get a copy of the Contract of Sale, take a good look around the property and clarify small particulars, such as inclusions.
It is also the time when building and pest inspections should be conducted. Arrive early
This gives the buyer the chance to review the terms and conditions of auction and make sure there are no late changes to the Contract of Sale
and get themselves ready to bid. Know the legislation
Legislation requires all people bidding at auction to provide their names, addresses and proof of identity prior to bidding at the auction. How to register
The bidder will be provided with a bidder number, which must be displayed if you make a bid during the course of the auction. It is important to remember that you don’t have to bid just because you have registered, but you must be registered if you intend to bid. How to bid Make sure the auctioneer can see you. You should hold up your bidder number and call out
your bid in a clear audible voice Passed in properties – prepare to negotiate
If the reserve price has not been reached during bidding and the property is passed in for sale by negotiation, bidders are able to negotiate to buy the property. However, there is no guarantee you will secure the property postauction even if you are the highest bidder. Safety measures
It is vitally important to keep to your budget as if you are the successful bidder, you will be the new owner of the property.
Before the auction write down your “walk away price” – the hard limit that you can bid up to and keep that piece of paper in your hand.