AUCTION
An Auction is a clear and transparent sales method held in the public forum where registered bidders can competitively bid against each other to purchase a property.
When the highest bid is accepted (if the vendors reserve price is met) a sale occurs on the fall of the hammer. The property will be passed in if the vendors reserve isn’t met.
Auction campaigns usually run for four weeks to allow enough time for potential purchasers to inspect the property and have enough time to get reports completed.
*Tips for buying at Auction
– Be informed about property prices in the area you are interested in
– Obtain a copy of the contract and get advice from your solicitor or conveyancer
– If you are interested in the property, let the agent know. You may consider making an offer before the auction
– If you are going to bid on a property it may be a good idea to arrange for professional building and pest inspections, surveys, strata searches etc to be undertaken before auction day
– If you are a first time home buyer, it is recommended you attend as many auctions as you can to get used to the auction process.
– If you intend to bid at an auction of a property you are required to register with the selling agent prior to the auction on the day. You must provide identification
– All bidders must display their registration number when making a bid
– If you are making a bid, make a clear and confident bid
– Know your price range and set your absolute limit. With an auction you can become carried away with emotions
– Remember to bring your cheque book! If you are successful you will be required to pay the deposit (usually 10% of the purchase price) after signing the contract on auction day.
PRIVATE TREATY
This is a sales method where the vendor sets an asking price then invites offers to be submitted and accepted. This is where you will usually see “Offer Over” or “Offers Above”.
Sales by private treaty generally allow for greater flexibility for negotiation and the vendor has more opportunity to consider each individual offer that has been presented. Time required to sell a property generally takes between two to six weeks.