1) Buying at Auction
Auctions are held either on-site or in-rooms. It is essential that you have read and understand the conditions of sale by public auction and that your finances are in order.
If you have any doubts as to the auction process or contract conditions it is recommended that prior to auction that your solicitor review all documentation.
If your bid is successful, you are required to pay the deposit and sign the contracts immediately.
The method of and amount of deposit payment varies for each property - consult with your Everest Realty agent beforehand. Each State is different, so consult your agent, but there is generally no cooling off period, you are now committed to buy.
If the bidding does not reach the reserve price, the house is not sold, and is termed “Passed In”. The property is now available for negotiation by any interested party.
You are required to register if you intend to bid at auction, and may do so at any time up until the close of the auction. Bidders must prove their identity and you will be required to show the agent identification on auction day
Some examples of acceptable identification when registering include -
- Drivers License
- Senior’s Card
- Vehicle registration paper
- Council rates notice
- Centrelink card
Once registered you will then be allocated a bidder’s number.
By law, all deposit monies must be banked into an official trust account on the next day they are received or by no later than the next business working day.
Real Estate agents do not receive any interest of benefits whatsoever from holding deposits on behalf of the seller.
When is the Property Yours?
It is important for buyers to recognize that the legal process governing what happens after an offer has been accepted varies between States. It can be a lengthy process.
The property does not become yours when you hand over the holding deposit. It is not until both parties have signed the contract and it becomes unconditional and binding that it is time to celebrate.
Importantly successful bidders are required to ensure that the property has insurance coverage from 5pm the next business day after the contract date.
Everest Realty agents are professionals and will keep in touch throughout the legal process to advise you of any developments.
2) Selling at Auction
Purchasers compete against each other in the open marketplace often paying more, as the true market value of the property is determined on the day and the purchase is totally unconditional.
There are numerous benefits of selling your property at auction:
- A set sales date allows you to make plans for the future.
- Buyers need to act within a specific timeframe or they risk losing the property.
- Placing buyers into an open competitive situation will usually achieve the best results.
- At all times you are protected by your confidential reserve price, with the help of your Everest Realty agent. Only you can change this reserve price.
- The absence of a set price attracts buyers from all price ranges, with each having a different opinion as to what they would pay for your property.
- Higher level of buyer activity
- Unconditional contract
- No cooling off period
- Auction campaign cover pre, post and auction day management of the marketing of the property
An auction on the property is legally binding. Once your property has been sold under the hammer, the sale conditions are set in concrete.
An advertising campaign which could include TV, Radio, video streaming, print, internet advertising, Open House Inspections, letter box drops, Property Flyers or direct mail will be arranged by your agent to expose your property to as many potential buyers as possible.