sualg Posted August 21, 2019 Share Posted August 21, 2019 Hi guys, I’ve been to view a property it’s going to auction in about three weeks. The real estate agent has given me a copy of a draft contract. The question I have is before the auction what steps should I have taken both with the contract and any other measures you feel necessary if I’m planning to bid on the property. The real estate agent has given me a copy of a draft contract. The question I have is before the auction what steps should I have taken both with the contract and any other measures you feel necessary if I’m planning to bid on the property. Obviously this whole process is a bit alien to me, I have found a conveyancing solicitor but haven’t instructed them as yet, any help would be gratefully appreciated. Quote Link to comment Share on other sites More sharing options...
Skani Posted August 21, 2019 Share Posted August 21, 2019 I believe you are in NSW? This is the NSW Office of Fair Trading's guide to buying at auction: https://www.fairtrading.nsw.gov.au/housing-and-property/buying-and-selling-property/buying-a-property/buying-property-at-an-auction If you do not have PR status I assume you are aware of restrictions and extra costs? Quote Link to comment Share on other sites More sharing options...
sualg Posted August 22, 2019 Author Share Posted August 22, 2019 2 hours ago, Skani said: I believe you are in NSW? This is the NSW Office of Fair Trading's guide to buying at auction: https://www.fairtrading.nsw.gov.au/housing-and-property/buying-and-selling-property/buying-a-property/buying-property-at-an-auction If you do not have PR status I assume you are aware of restrictions and extra costs? Hi, Yes I am in NSW and have PR. Thanks very much for the link, its very useful. I don't understand this element :- the auctioneer is entitled to make one bid only on behalf of the seller how is it that a auctioneer can make a bid on behalf of the seller, it makes no logical sense? Quote Link to comment Share on other sites More sharing options...
Skani Posted August 22, 2019 Share Posted August 22, 2019 It doesn't make much sense to me either but I believe it is used to get the auction moving if there is not much action. But someone more involved in this real estate lark might be able to elaborate further. Quote Link to comment Share on other sites More sharing options...
Marisawright Posted August 22, 2019 Share Posted August 22, 2019 4 hours ago, sualg said: the auctioneer is entitled to make one bid only on behalf of the seller how is it that a auctioneer can make a bid on behalf of the seller, it makes no logical sense? If no one will start the bidding, or if bidding stalls, the auctioneer is allowed to make a fake bid to start the ball rolling. Quote Link to comment Share on other sites More sharing options...
Marisawright Posted August 22, 2019 Share Posted August 22, 2019 (edited) 8 hours ago, sualg said: I’ve been to view a property it’s going to auction in about three weeks. The real estate agent has given me a copy of a draft contract. The question I have is before the auction what steps should I have taken both with the contract and any other measures you feel necessary if I’m planning to bid on the property. Obviously this whole process is a bit alien to me, I have found a conveyancing solicitor but haven’t instructed them as yet, any help would be gratefully appreciated. When you bid at an auction in NSW, it's binding. You've bought the property and you're bound by that contract - you can't do any negotiations and there's no backing out! So you need to do all your research before the auction, because it's too late to do it afterwards. Therefore you need to instruct your conveyancer now, tell them you're going to be bidding at auction and ask them to check the contract and do all the necessary searches etc. I hate auctions for that reason, because you can spend a lot of money on conveyancing for property after property and sometimes you may never get a bid in. Be aware that the guide price given by the agent is nearly always lower than the price the owner is looking for, sometimes by a large amount - it's supposed to be illegal to underquote in NSW but it's still rampant. Edited August 22, 2019 by Marisawright Quote Link to comment Share on other sites More sharing options...
Melbpom Posted August 23, 2019 Share Posted August 23, 2019 Go to a couple of auctions before hand just to get familiar with the process. I'd also watch the auction sold prices of comparable properties and compare these to the previously advertised selling range. Know your bidding limit and be aware of the additional costs such as stamp duty. Have your cheque book ready for the 10% deposit. You can ask the agent prior to the auction if a 5% deposit if acceptable if that suits you better. Good luck, let us know if you're successful. Quote Link to comment Share on other sites More sharing options...
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