A SUCCESSFUL BID: THE TRUE MARKET VALUE

Buying at auction avoids the traditional offer/counter-offer negotiation process. If the bid is accepted you’ll have the satisfaction of knowing you have purchased at ‘true market value’. An auction is an exciting, competitive environment where everything is out in the open. You can see your competitors and keep track of each and every bid.

MAKE THE TIME TO GET THINGS RIGHT

Once you have identified an auction property that you’re interested in, you’ll know the date by which to arrange finance. You can then sell your existing property, organise a property check and familiarise yourself with all the auction documents. Your solicitor can also inspect the title of the property and investigate all legal matters relating to your prospective purchase.

This time is also when your Brock Harcourts consultant will help you gain a better insight into the local market - a very important consideration when trying to assess the market value of the property. You should also consider obtaining an independent property valuation as a further guide.

If you’ve never attended an auction before you should definitely do so before attending the auction of the property you intend to purchase. This will help you to become more acquainted with the auction process and it’s various features.

Of course the whole process may never get to auction day. Often a property is purchased ‘by prior agreement’. In this instance you can submit an offer to the property owner for their consideration – a key step of identifying your interest in the property.

 Let the marketing consultant know if you are interested in a particular property. Then, if another purchaser submits an offer prior to the auction, you’ll be contacted and given the opportunity of submitting your own offer. Inspect the property as many times as necessary and, if you have any doubts, arrange for a builder, plumber, electrician or any other tradesperson to accompany you.

Also check the auction documents. Make sure you’re familiar with and understand all the details and conditions of sale (the deposit, possession date, balance of payment, list of chattels etc). You don’t want any unpleasant surprises come auction day. Arranging finance is important too. Sales by auction are unconditional, so it’s vital to have finance confirmed before you bid.