Buying a property at Auction

shutterstock_50097079Buying a property is one of the biggest financial decisions you will make, and with the added pressure of an auction, things can often be confusing.

When the gavel comes down and you are the highest bidder you are usually bound to go through with the purchase, no matter how unfair the contract might be. Many buyers are not aware that if they are successful at auction they have to sign the contact “as is” at the auction and are unable to negotiate any changes to that contract after the auction.

If you are looking to purchase a property at auction you should have the contract reviewed prior to the auction.  We will identify any terms that may not be in your favour and negotiate to change them so that you know exactly what you are signing up for if you have the winning bid.

If you really like a property and are seriously considering bidding for it at auction, here are a few tips:

  • it is often possible to make an offer prior to the auction, this often takes the pressure off and makes the process easier;
  • when budgeting, make sure you have allowed for additional expenses such as government stamp duty;
  • obtain a pest and building report before the auction;
  • have the contract reviewed by a lawyer before the auction;
  • make sure you have inspected the property and you are satisfied with the property in its current state; and
  • most importantly stick to your budget (its easy to get carried away, so make sure you have your top figure in your mind and don’t be pressured by family or real estate agents to go past that amount).

We wish you good luck in finding that perfect property.  Please do not hesitate to contact us if you have any questions or require any further information.