- It’s your last opportunity to ask questions before the bidding begins.
- The auctioneer will begin by reading the terms and conditions, then talk generally about the property.
- Most auctions are held ‘subject to a reserve price’ - the price below which a property may not be sold. When the property is about to be sold, the auctioneer will announce that the property is going to sell.
- Making a bid simply involves making any gesture to attract the attention of the auctioneer. Be aware that any bid you do make over the reserve price could be the one that buys the property.
- If you’re successful on the day you are required to sign the sales agreement and pay a deposit. This is normally 10% of the purchase price unless an alternative amount has been agreed to by the vendors prior to the commencement of the auction (this to be in writing and signed by the purchaser/s and the vendor/s).
A SUCCESSFUL BID : TRUE MARKET VALUE
Buying at auction avoids the traditional offer/counter-offer negotiation process. If the bid is accepted you’ll have the satisfaction of knowing you have purchased at ‘true market value.’ An auction is an exciting, competitive environment where everything is out in the open. You can see your competitors and keep track of each and every bid.
‘Passed in’ is the term used when a property fails to reach the reserve price. The property will then be put on the open market and conditional buyers may submit an offer.