"How can we buy this property on Auction day...?"
Some commonly asked questions about auctions
What is a real estate auction?
Auction is a form of marketing and selling a property through intensive advertising media designed to capture the maximum attention of buyers within a set time frame. The process is a means of purchasing/selling real estate through public negotiations to determine the true market value of the property at the time.
What is the reserve price?
This is the minimum figure at which the auctioneer is instructed by the Vendor to sell the property.
This is usually set just prior to the auction. It is generally set as a result of the feed-back the vendor has received during the marketing period from interested parties.
It is confidential and will not be disclosed before the auction.
How do we bid?
The auctioneer will ask for an opening bid and will then nominate increments by which the bids may be increased. E.g. I am looking for $10,000 bids from here!
To bid, simply attract the auctioneers attention by:
If you require assistance to bid, speak with your sales person who will help you.
Can I bid if I am not present?
Yes you can, although it is easier if you are present. To arrange to telephone bid you need to fill out and sign a Telephone Bidding FormÂ. Please speak to a sales person about this well before auction day.
What happens if I am the successful bidder?
You will need to sign the contract and pay a deposit of 10% of the purchase price.
You bid on a cash unconditional basis.
Can I bid if I have a property to sell?
There are two options. If you are in a sound financial position you may arrange bridging finance to cover until you sell your property. The other is to ask for a longer settlement date, giving you time to sell and settle your property.
What price do I have to pay to buy the property?
This is the amount you are prepared to pay and the Vendor is prepared to accept.
Other buyers may have different ideas on the value of the property. If the Reserve price is met, the highest bidder shall be the Purchaser
What if the property doesn't sell?
If the property doesn't reach the reserve price, the highest bidder has the first right to purchase at the Vendor's reserve. This is a privileged position to be in as a Purchaser.
If a sale is not completed immediately, all other interested parties are invited to offer. This will also include any conditional buyers.
If you are in an unconditional position, take advantage of the auction environment.
Can I buy before Auction Day?
Yes, in most cases you can. Please discuss this with the marketing sales person.
You will need to submit an unconditional offer on the Auction Contract, accompanied by a ten percent deposit cheque. If the offer is at an acceptable level to the Vendor, all other registered buyers will be contacted and:
Â· given the opportunity to submit their best offers
Â· We may bring the auction date and time forward, opening the auction with the instigating offer.
Harcourts Auctioneers and Salespeople are specially trained to assist you should you have any questions or you require any further information about auctions.
If you wish to be notified of any pre-auction offers, please register your interest with your sales person