Hi all,
I’ve come into some inheritance money through a family member’s death which has allowed me to now be financial for buying a house, something I’ve always dreamed of. I’m looking for a house as I’d like to have awesome parties and also have a dog.
I’m based in the ACT and have found the whole process of auctions and buying a house extremely stressful. I’m from the UK originally and we don’t have this system over there so I’m finding it quite tough to handle.
I went to an auction last Saturday for a house which I absolutely adored and was within my price range (I’ll be honest and say it is approximately $500k). I was the highest bidder until I was outbid by another $10k, and as bitter as it sounds I think the way in which the auctioneer basically shouts it out loud that the couple who won are the luckiest people ever, extremely rude and needless.
The whole process is pretty horrific.
How has everyone else’s experience been, and do you have any tips for auctions or house hunting the ACT in general?
Hi thefox,
Hmm, bad news – sorry to hear that. I don’t know the Canberra market, but I would think you don’t HAVE to buy at auction do you? It is far easier and less emotive to go to a Real Estate agent and write up a contract.
I’m from Brisbane and most of our sales are done through private treaty (i.e. via a contract, not an auction). It would probably be much like how things were done in the UK, but of course, I am guessing….
Auctions can be scarey from many levels – e.g. did you know that you could be in serious trouble if you weren’t able to get finance after winning the final bid? See, by private treaty, you can take things slow and careful, add clauses that protect YOU (like “subject to finance being available suitable to purchaser”, and “subject to satisfactory building inspection”).
At auction, these are not part of the game, though I think you can arrange some things AHEAD of the auction. e.g. It is common for a 10% deposit to be made by the winning bidder as they go to contract (but this can be arranged to be different if done AHEAD of the auction).
In short, it is what you don’t know that can cause problems, so do school up on the whole auction process if you want to continue with them. Or, stick to private treaty, and check each step with your solicitor before you take it.
Good luck, and welcome to pi.com :)
Benny
Hi, hopefully you managed to secure a home by now. Auctions are a mental game and you have to be prepared to walk away at your cut off point. I would advise going to a few before hand as an observer just to get used to the process, the pace and the tactics utilised by both the auctioneers and the bidders.
Tim Mardiyants, MBA, DipProperty (Agency Mngt) | BLOCK Real Estate - Canberra
http://www.blockrealestate.com.au
Email MeSales. Property Management. Buyers Agent.
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