The ‘traditional’ way of buying property in Queensland – i.e. signing up to an estate agent’s mailing list; making appointments to visit properties you like the look of; putting in an offer and waiting to see whether it is accepted; hoping the chain you are in does not fall apart before you have exchanged contracts – is no longer the only way to go about purchasing the home you desire.
Television programs such as ‘Homes Under the Hammer‘ have raised the public’s awareness of being able to buy a property at auction.
But beware; it is not always as simple as it is made to look on television.
The following article identifies how a property auction works and how you can prepare for bidding at an auction.
Buying Property on the Sunshine Coast
There are several things you can do to make sure you are prepared for the auction.
You should view and research the property you are considering bidding on; just as you would if following the conventional conveyancing route. Instruct a Sunshine Coast conveyancing solicitor to look over the Auction Pack and ensure that all the paperwork is in order.
Every property that is going under auction will have an Auction Pack associated with it. This pack includes the title deeds, searches, and a Property Information Questionnaire.
You should make sure to acquire an Auction Pack and to familiarise yourself with the information before attending the auction.
The time and date of the auction will be set and advertised in the auctioneers’ mailing lists and information packs.
You should also attend a couple of auctions prior to the one at which you intend to bid, so that you have a feel for how auctions work in reality and therefore know what to expect. You also have the option of entering a pre-auction bid but, to be successful, these are usually pitched quite high.
Conveyancing Sunshine Coast
The property will usually have a specified reserve price. This is the lowest price that the vendor is obliged to sell the property at.
If, on the day of auction, the bidding does not reach the reserve price, it is at the vendor’s discretion whether the reserve is then lowered: though the vendor cannot, at any point during the auction, raise the reserve price.
The highest bidder at the time the hammer comes down will be the new owner of the property and will be legally obligated to carry through the transaction.
The successful bidder will be required to pay a deposit at the auction and will be legally obliged to produce at least two forms of identification.