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Bidding at Auction

The Key to a Successful Bid at Auction

It may seem difficult, or even daunting but there are many advantages of purchasing at auction. When the buyer and seller meet, and a conclusive sale eventuates, true market value for that property will have been established. It's a proven system of success. Once you've identified a property you're interested in, you'll know the date by which to arrange finance. You can then organise a building inspection if needed and familiarise yourself with the auction documents.

Your solicitor/broker can also inspect the title of the property and investigate all legal matters relating to your prospective purchase. If you've never attended an auction before you should definitely do so before attending the auction of the property you intend to purchase. This will help you to become comfortable with the auction process and it's various features. Of course, the whole process may never get to auction day. 

Often a property is purchased 'by prior arrangement'. In this instance you can submit an offer to the property owner for their consideration - a key step of identifying your interest in the property. Let the real estate consultant know if you are interested in a particular property. Then, if another purchaser submits an offer prior to the auction, you'll be contacted and given the opportunity to submit your own offer. Inspect the property as many times as necessary and, if you have any doubts, arrange for a builder, plumber, electrician or any other trades-person to accompany you. 

Tip: Review the auction documents prior to auction day. Make sure you're familiar with and understand all the details and conditions of sale (deposit, possession date, balance of payment, list of chattels etc). You don't want any unpleasant surprises come auction day. Arranging finance is as important, as sales by auction are unconditional, so it's vital to have finance confirmed before you bid. 

If you have any concerns relating to market value, ask the real estate consultant to provide you with an insight into the local market - a very important consideration when trying to assess the market value of the property. You may also consider obtaining an independent property valuation as a further guide.