Can I make an offer before auction day?
Absolutely. In fact, up to 50% of auction properties are sold prior to auction day. However, the decision to accept your offer is entirely up to the vendor.
What if my offer isn’t accepted prior to auction?
Don’t feel disheartened. Sometimes the expectations of the vendor differ from those of the market, or you may have underestimated the value of the property. Keep in touch with the listing agent as the vendor may re-evaluate their expectations after gauging the interest in the property.
Do I need to register to place a bid on auction day?
YES! If you wish to bid on auction day, you must be registered. This can be done on the day or beforehand, just speak with the listing agent. Just because you’ve registered to bid, doesn’t mean you have to place a bid. It’s a ‘better safe than sorry’ situation.
What if I can’t meet the standard terms and conditions of auction?
Speak to the listing agent prior to auction day to request alterations to the standard terms and conditions; including things like the settlement terms, deposit, inclusions or conditions of the sale contract. The alterations must be agreed upon by the vendor prior to commencing the auction, but keep in mind that the vendor reserves the right to decline your request.
How long is the cooling-off period for buying at auction?
There is no cooling-off period (hooray!). That’s one of the major benefits of buying a property at auction rather than through private treaty.
When should I organise a pest and building inspection?
Whilst pest and building inspections are not mandatory, they are highly recommended so you can make an informed decision, however, they must be conducted prior to auction day. As the successful buyer on auction day, you enter a non-negotiable commitment to purchase the property as-is. If you skip the pest and building inspection, you could be in for some nasty surprises down the track.
Do I need to be in attendance on auction day?
No, however you must be contactable. The auctioneer may need your instruction throughout the auction so it's important they can reach you easily over the phone. If you're unable to attend, the auctioneer may complete any necessary documentation on your behalf to finalise the sale; this is one of the standard conditions of auction.
Can I sell my property prior to auction day?
Absolutely, it's actually quite common to do so. Generally your listing agent will encourage buyers to make offers where they see value. If an offer is presented that you're happy with, you can accept it, however be aware that offers subject to conditions aren't legitimate until they are unconditional, and should therefore be treated as such.
Should I organise a bidder to help the auction get started?
NO! Aside from being illegal, it can also discourage real buyers and may lead to scenarios where the property is passed-in instead of being sold. If the auctioneer suspects the seller has done this, they may cancel the auction immediately.
What if there are no registered bidders?
This situation does occur occasionally, however it's still recommended to run the auction as buyers are able to register on auction day. Sometimes buyers need conditions to their contract which prevents them from bidding. Your listing agent should encourage these buyers to attend the auction as they may be able to engage in immediate post-auction negotiations.
What if there is only one registered bidder?
In this case, the auctioneer will usually discuss this with the sole bidder prior to the auction. This is done so the bidder is on the front-foot and is encouraged to bid so a more private negotiation can occur under auction conditions. It's very common for property to sell at auction with only one bidder.
What if my property doesn't sell on auction day?
Don't stress; a large percentage of properties sell to conditional buyers within 14 days post-auction, or to buyers who entered late in the campaign. If the property doesn't sell, the auctioneer or agent will discuss the post-auction strategy immediately after the auction. It may be recommended that your property is listed as a private sale with your asking price advertised to further entice buyers.
How does the auction start if nobody bids?
Frequently when the auctioneer asks for an opening bid they are met with silence from the crowd, as placing the opening bid is a big decision and some people aren't comfortable going first. In this case, the auctioneer may elect to place a vendor bid to get things started. This is done conservatively as it's purely a tool to encourage bidding, not to represent a potential selling price. Keep in mind that the best auctions have momentum, so opening with a low bid gives other bidders more confidence to bid. If the opening bid is too high, it may scare potential buyers, particularly those whose bidding is required to push the premium bidders to their limit.
Can't find what you're looking for?
Items that are presumed to stay with the property when sold, but have been specified on the contract as not remaining.
Fixtures or fittings
Items of the property that are permanently attached in some way, such as by nails or wires. For example, the oven, built-in furniture, light fittings, tv aerials, or fitted carpet, all of which are deemed as permanently attached.
A freehold property has a clear title of ownership and is not subject to lease.
Moveable items to be sold with the property, such as pool equipment, fridge, freestanding shed, playhouse etc. These items will be noted in the contract if they are included in the sale.
Sometimes land is subject to a lease. The owner of the land leases to the tenant for a fixed rental sum for a fixed period.
Money paid by a seller that is used to increase the advertising spread.
A promotional package put together to expose the property to the market. It may include the type of advertisements, a calendar of advertisements and open homes, the buyer contract and service.
No price marketing
This is where the price is not revealed to buyers during the marketing promotion, it is marketing without a price (MWP). This is also referred to as ‘Auction’, ‘Tender’ or ‘For Sale by Negotiation’.
On the market
When the bid has reached the vendor’s reserve price during an auction, it’s announced as being ‘on the market’ and will be sold at the auction.
If a property is not sold at auction because the owner’s reserve price has not been reached, the property is ‘passed-in’.
The reserve price is the minimum price that the vendor will accept for their property at auction. This is kept confidential between the vendor, listing agent and auctioneer.
A legislatively required bank account where monies are held by an agent for, or on behalf of, another person such as deposits, rental etc.
This is the person selling the property, also known as the ‘seller’.
This is a bid made by the auctioneer on behalf of the vendor. It is usually done at the start of an auction to encourage people to bid, when the crowd shows little sign of placing the opening bid. If a vendor bid is placed, the auctioneer will clearly disclose this as a ‘seller bid’ or ‘vendor bid’.