BUYING A PERTH HOUSE AT AUCTION
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| BUYING PROPERTY | |
What is Sale by Auction?
Buying a Perth house at auction is a form of property sale whereby the property is available to bidders at a sales meeting conducted by a licensed auctioneer.
How does the Auction process work?
The seller will allocate a reserve price to the Perth property prior to the house auction commencing. The reserve price is the lowest price that the seller is prepared to sell the house for.
The auctioneer will ask for a first bid to start of the bidding. Early bidding is generally below the reserve price. The auctioneer will manage the bidding process on the Perth house auction as the bids progressively increase until such time as there are no further bids on the house.
If at this point the house has reached or exceeded the reserve price, the auctioneer will tell the bidders that the house will sell today. The winning bidder will then complete the transaction on the Perth house by signing the relevant paperwork. The auctioneer accepts the offer on the house on behalf of the seller.
What if the Perth house does not reach the reserved price?
If the house fails to reach the reserve price at auction then the housedoes not sell. It is at this point that the auctioneer will generally enter into private negotiations on behalf of the seller in order to sell the house outside of the auciton.
What happens once the property is sold?
Once the house has been sold at auction the settlement procedure continues in the same manner as that when a home in Perth is sold by offer and acceptance.
At the close of the auction a deposit of 10% is paid and the contract is signed. The balance of the purchase is paid in full at time of settlement. (The settlement date is included in the conditions of sale)
Is it true auctions are cash sales
Yes it is true, generally property for sale at auctions is a cash sale only.If you intend to buy a property at auction then you need to organise your finance beforehand and have the deposit available on the day. The deposit is payable by the purchaser at the close of the auction.IMPORTANT
If you are buying a property at Auction then you need to do your research and be aware of the property is worth. The last thing you wantto do is bid a too higher price than what a property is worth.It can sometimes be difficult to not get emotional when bidding for a property at auction and pay a highprice just to secure the deal.
Attend the auction knowing what your maximum bid is and stick to it. If you are unsure you can't do this then it may be worth getting someone to do the bidding for you.
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