Wagga Wagga Blog

TIPS FOR BUYING AT AN AUCTION

Bidding at an auction can be daunting, here are a few tips to become familiar with the auction process for a better chance at winning the dream home.

Do your research and understand what you are buying, research the area and know your price willing to pay. Check with your lender and be pre - approved and ready so you know your full borrowing capacity. When purchasing at an Auction there is no cooling off period so if your the winning bid your locked in.

Here are a few basic rules of property auctions that apply in every state:

Auctions are unconditional and do not have a cooling-off period.
Dummy bids – non-genuine attempts to raise the bidding are illegal.
When bidding reaches a vendor’s reserve price, the property is on the market.
A deposit is paid and contracts signed immediately.

Some general rules of auctions worth noting are:

Your bid must be acknowledged and accepted by the auctioneer.
All bids must be submitted by genuine buyers (i.e. no dummy/fake bids).
A bid is legally binding and you are obliged to purchase the property if you are the highest bidder.
No cooling-off period if you purchase at auction;
You cannot submit a bid after the auctioneer has called the property as sold.
You cannot retract or amend a bid once it has been accepted by the auctioneer.
You cannot stop or disrupt an auction
You may ask questions of the auctioneer, or seek further clarification of bids.
A vendor bid must be declared as such, and be in accordance with the auction rules.
If a property auction fails to achieve the reserve price set by the vendor then the auctioneer will pass the property in.
The highest bidder at the auction will be invited to negotiate directly with the vendor immediately following theauction.
If they reach agreement the property is sold.