The following are the main advantages of buying properties at auction: -
The property is available for sale on an appointed day and venue for all interested parties so everyone can have an equal chance of buying properties at auction.
There is no drawback of the vendor ‘pulling out’ as the contract of sale is binding as soon as the hammer falls.
Auction often offer a wider range of properties for sale. For example, double storey terrace house, bungalow, shop house, land and etc.
All the legal work and surveys should be completed prior to the sale, you can enjoy speedy purchase and completion of the sale.
The following are the issues to consider before making your first bid at an auction of property: -
VISIT AN AUCTION
We suggest that you should attend an auction to ‘get a feel’ for the auction process itself. It is also a useful opportunity and venue to enquire the auctioneer on questions which you may have. Please read throughly the Proclamation of Sale and understand the conditions of sales before you proceed with any bidding.
You will need to have enough funds to pay the deposit on the day of the sale (normally 10%) during auction. In addition, you will have to have your loan in place to pay the balance (90%) if you are a successful bidder. The 90% payment is due 90 days later.
We suggest that you should have conducted a survey to ensure that the property is found. It is important for you to be careful in your selection of the property that you wish to buy.