1. WHEN AND WHERE WILL THE AUCTION TAKE PLACE?
The Auction will take place at either the property or an alternative location. Each property advertised will clearly stipulate the location, date and time of the auction.
2. IS IT JUST FOR CASH BUYERS?
The straight answer to this question is Yes. If you have a home to sell or you are not in a cash position you should discuss this with your Property Consultant and see what can be done. To bid at Auction you need to be bidding in cash. 10% deposit is only required on the day of the Auction, balance is due on the settlement date.
3. HOW DO I WORK OUT THE PRICE?
The Auction system allows you, the market, to firstly appreciate the house and then determine the price. We find as Property Consultants, that some people literally become experts in a particular price range and they are able to indicate pretty well exactly what a home is worth. They do this by drawing on the experience of the homes they have looked at in that particular price bracket. If you need help with a guide to the price, ask the Property Consultant for guidance. Whilst you will not get actual figures, a Property Consultant will refer you to homes of similar price, or in a similar bracket that we believe indicate a reasonable price for the Auction home. You should see it as an opportunity to buy at Market Value as the fact that the Seller is taking their home to Auction indicates they are relatively keen to sell.
4. CAN I MAKE AN OFFER BEFORE THE AUCTION DAY?
Simply yes you can as with all buying opportunities. It will be up the Seller whether they wish to discuss the option prior to auction or not. Speak with your Property Consultant and they will guide you towards the best outcome.
5. HOW DO I PARTICIPATE AT THE AUCTION?
You will need to register, giving your name, address and telephone number. Once registered, you may be required to display an identification number when bidding.
6. HOW WILL THE AUCTION BEGIN?
The auction is generally opened with the auctioneer announcing the attributes of the property, and any relevant details such as restrictions on the title and the deposit required. The auctioneer then calls for, or announces an opening bid, usually below the reserve price. The price is raised progressively as the auctioneer accepts more bids.
7. HOW WILL I KNOW THE RESERVE PRICE HAS BEEN REACHED?
When the reserve price has been reached or exceeded, the auctioneer will usually indicate this by saying ‘this property will sell today’ or something similar. If the auction fails to reach the reserve price, the property is ‘passed in’ (does not sell). The auctioneer, on behalf of the seller, may enter into private negotiations with the highest bidder or other bidders immediately after the property is passed in, to try and negotiate a sale.
8. WHAT HAPPENS WHEN THE PROPERTY IS SOLD?
The person who makes the final bid must then complete the transaction by formally signing their offer to buy, which is then signed and accepted by the auctioneer on behalf of the seller. At this point the sales contract has been concluded. When a property is sold at auction, the settlement process is the same as that used when a property is sold by private treaty.
9. CHOOSING A SETTLEMENT AGENT
If you become the successful bidder, you will need to immediately nominate a settlement agent to transfer the land title and conduct the settlement for you unless you wish to do it yourself. It is therefore best to choose a settlement agent before the auction.
10. IN SUMMARY
Overall, to buy at Auction can be an exciting and worthwhile opportunity. Because the Seller is Auctioning their home, they are normally “motivated” to find a buyer. Instead of seeing the Auction as a daunting affair, we suggest you see it as an opportunity to purchase the home you want at a reasonable price. Don’t forget that both the Seller and First National Real Estate Broome are keen see the home “SOLD” either before Auction, on the day, or as soon as possible after the Auction. We are here to help you through the process just let us know what we can do.
11. WHERE DO I GET MORE INFORMATION?
Contact First National Real Estate Broome on 9192 2000 or Real Estate and Settlement Advice Line on 1300 304 064.
12. OTHER USEFUL INFORMATION?
Phone Department of Commerce 08 9191 8400.