Auction Information

What is a Real Estate Auction?
Auction is a form of marketing a property through intensive advertising mediums designed to capture the maximum attention of buyers within a set time frame. The process is a means of purchasing Real Estate through public negotiations to determine the true market value. 

What is the reserve price?
The reserve price is usually on the day of the Auction set by the Vendor. The Real Estate Salesperson is unaware of the reserve. The only person who will know is the Auctioneer. The reserve if generally established by the intending purchasers feedback. 

Can I buy before Auction?
Yes, in most cases you can. Simply submit your offer to the agent and if the price & conditions are agreed to, the contract is then completed and the property is sold before Auction. In fact, 50% of Auctions are sold this way.

How do we bid at Auction?
You must register before you can bid, you will then be assigned a card or a paddle with a number on it, then simply attract the attention of the Auctioneer by putting your number up. The Auctioneer usually nominates the amount of the bid they are looking for. If you are the successful bidder, you will be asked to pay the deposit and sign the contract. 

I can’t buy at Auction because I have to get finance
That’s OK. You can organise, through your bank or building society, approval to bid up to a price that you are prepared to pay. This offer would be subject to the Bank’s valuation. This is simple to organise & only takes a couple of days. 

I want to buy it, but I have a house to sell.
There are 2 answers. If you are in a sound financial position you may organise a bridging loan. The other way is to buy on a longer settlement date, giving you time to sell and settle you house.

What price do I have to pay to buy the property?
This is the price YOU are prepared to pay. Other people will perceive different amounts. Generally, your price will be established by what property has sold for around the area & also particular features that the home offers you.

What if the house doesn't sell?
If the reserve price is not reached, it is passed into the highest bidder immediately after the Auction at the reserve price, otherwise the property will be offered for sale to all other interested parties.

What contract do we sign and what are the standard conditions?
The contract is the standard REIQ contract. This contract is on display at the Auction. The usual conditions for purchase are:
10% of the purchase price is paid as deposit: either by cash, bank cheque or bank deposit.
Settlement date is 30 days from the signing of the contract.