Q. What is a Real Estate Auction?
A. 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 the purchasing of Real Estate through public bidding / negotiations to determine the true market value of the Property.
Q. What is the Reserve Price?
A. The Reserve Price is usually set on the day of the Auction by the Seller. The Real Estate salesperson is unaware of the reserve. The only person who will know is the Auctioneer and Seller.
Q. How do we bid at the Auction?
A. Simply attract the attention of the Auctioneer by: 1. Putting up your hand 2. By calling out 3. Nodding your head when catching the Auctioneer’s eye The Auctioneer usually nominates the amount of the bid he is looking for. If you are the successful buyer, you will be asked to pay the deposit and sign the contract. All Bidders must show their number identifier when bidding at the auction.
Q. Can I buy before Auction?
A. Yes, in most cases you can. Unless the Sellers instructs the Real Estate agent to sell only under the hammer at Auction on Auction day.
Q. What Conditions are deleted from the contract?
A. Most contracts will have deleted Conditions 3 and 4 from the contract the finance & building inspection clauses. The Cooling Off Period has also been deleted giving the Seller an un-conditional contract.
Q. I want to buy, but I have a house to sell?
A. There are two 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 your own home.
Q. I can’t buy at Auction because I have to get finance
A. 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 and only takes a couple of days before auction.
Q. What price do I have to pay to buy the Property?
A. This is the price You are prepared to pay. Other Buyers will perceive different amounts.
Q. What if the house doesn’t sell?
A. If you are an under bidder or if you have an interest in purchasing the property on terms and conditions other than those under Auction, please do not leave the Auction until you have ascertained whether or not the property has in fact been sold.
Q. How much deposit do I have to pay?
A. If the property is sold to you as the highest bidder at auction you will have to pay between 5% and 10% of the purchase price to the nominated stakeholder on the contract. If the property is sold to you before auction you still pay the 5% to 10% deposit.
Q. When do I move in to the new property?
A. Normally within 30 days from sale date, unless stated otherwise on the contract.
Q. Do I need To Register To Bid?
A. Yes, Under the new Queensland Government Act ALL bidders MUST register showing photo ID and providing name, address and contact numbers when registering.