AUCTIONS
Auctions can be a daunting process but don’t let this hold you back from the possibility of securing that property you want. Here’s what you need to know…
Prior to the auction
- Auctions are an open and transparent way to purchase property
- When the seller decides to auction the property, it usually means they are motivated and will accept the highest the market is prepared to pay
- Most auctions are cash unconditional, so you will need to have you finance sorted out before you decide to bid
- Some auctions these days are subject to finance however this will be stated in the advertising that it is a subject to finance auction, and you will need to provide a pre-approval to the agent and register prior to bidding
- You can request a comparative sale evidence sheet which was used by the agent when they listed the property to understand the probable selling price
- The agent will clearly disclose what the terms and conditions are of the auction and will give you a copy of the contract that you will be signing so that you can peruse this before signing it
- The deposit can a fixed an amount ie: $10 000 or a percentage ie: 10 % depending on what the sellers or the financial institution that is selling the property want.
- The settlement is usually 30 days, but a longer settlement date can be arranged by asking the agent to ask the seller. The settlement can then be varied and agreed upon by both parties
- Usually, a timber pest and building inspection is done by the purchaser prior to the auction however this can also be agreed by the seller to be done afterwards as a special condition depending on the seller
At the auction
- Before the auction, the auctioneer will go through the terms and conditions of the auctions and describe the property
- Registrations will be made prior to the auction commencing
- The seller will set a “reserve” and the highest and best bid above the reserve will be accepted by the auctioneer and the property will then be sold
- If the reserve is not reached, the highest bidder will get the opportunity to negotiate and secure the property under auction conditions through the guidance of the auctioneer
- If the reserve cannot be reached or common ground cannot be found with the highest bidder and the auctioneer, then the property gets “passed in” meaning it is now put back on the market usually with a price and anyone can now make an offer to purchase the property.
- The auctioneer will let the buyers know when the property is about to be sold by calling it on the market
- When the property is sold the buyer will sign the contract and pay the deposit to the agent
If you have more questions about auctions whether you are a seller or a buyer please contact one of the proficient sales team at the Geraldton Property Team on 99204111.
To view our properties coming up for auction on the 7th November 2020 please see the links below.
