Do I have to be in a cash position to bid?
Yes! To bid at an auction you need to be bidding in cash - only 10% deposit is required on auction day and the balance is due on the possession date.
How do I determine the price?
The auction process allows you and the market to firstly appreciate the property and then determine the price.
What about selling my own property?
One of the benefits of buying at auction is that you may have up the three months with prior permission from the vendors to organise and get your own property sold.
How do I get finance when I am not sure of the price?
Most lending institutions are now conversant with modern auction techniques.
Can someone else bid on my behalf?
Absolutely! Anyone can bid for you on auction day. If you have a solicitors, valuer or experienced member of your family bidding on your behalf, they may require written advice as to how high you wish for them to bid. With the permission of the vendor and with prior notification to the auctioneers, you may also bid by phone.
What is a vendor bid?
The conduct of auctions states that the vendor has the right to bid himself/herself or through an agent or through the auctioneer. This bid may be used to start the auction or by the auctioneer during the auction simply to increase bidding.
What are the normal conditions I would purchase under? - 10% of the purchase price is required to be paid on the auction day if you are the successful bidder. This can be paid by way of a bank cheque or by electronic funds transfer at the office. When you bid at an auction, you are buying unconditionally and with cash ie if your bod is successful, you have purchased the property. There is no ‘subject to finance’ or ‘subject to house sale’, you have bought the property.
Can I purchase before auction day?
The vendor would need to be convinced that the offer is a very good one for them to consider swelling before auction day. Some vendors may take this option and some may not. Because the property is going to auction, if an acceptable pre-auction bid is tabled, then all interested parties are contacted. Ask your sales consultant about the procedure for a pre-auction bid.
What are the ‘Particulars and Conditions of Sale?
This is the contract that you will sign if you are the successful bidder on the day. It is simply a contract that spells out the conditions you have bought the property under and bids you to the purchase of the property. It also binds the vendor to sell the property to you as per the auction agreement. The ‘Particulars and Conditions of Sale’ are available prior to the auction. If you have any doubts on the terminology or clauses used, please speak to your sales consultant and/or solicitors.