Un­der­stand­ing the auc­tion process

Con­sumer tips pro­vided by REIQ

Whitsunday Times - - REAL ESTATE -

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.

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