Hello,
I have never purchased a property at an auction before, just wondering if anyone has tips, suggestions, negotiation tactics I can use and potential legal issue to look out for?
The property is for personal use and is being sold through a trustee (I think its soon to be a deceased estate?) The Trustee won’t accept any offers prior to auction (I have been told this by the agent …. should I go direct and speak to the trustee about this?), but I have been given an indication by the agent that they are looking for 200 – low 200’s.
Any comments are greatly appreciated.
Regard,
Brent
The Trustee won’t accept any offers prior to auction (I have been told this by the agent …. should I go direct and speak to the trustee about this?)It is my experience that all trustee sales go to auction. This is not unusual.
Have you or your solicitor veiwed the vendor’s statement?
What are comparable properties being sold for?Hi Woodsman,
I am picking up the vendors statement today and will have a solicitor look over it.
Comparable properties in the area will sell between 200 – 240K.
I have decided that I might contact the trustee direct as I don’t really trust the agent.
I have read the info on this site and found it interesting.
http://www.jenman.com.au/BS_Auctions.php
>> b
Sales of this nature will go to auction in the majority of cases. This is simply because it is the trustees duty to attempt to gain a fair/market value for the property.
Auctions can provide some of the best buying opportunities if you are sharp and know your market. Good luckThanks Yorker. I will have a chat with the agent and see if I can’t get an indication of the reserver price from them, this will give me a better idea if I should spend the $ to get building inspections and valuations done.
You should never bid until the propertty is on the market (assuming it reaches the reserve) and preferably wait til the very end to strike with a bid when the crowd believes there are no more bidders. I am also a fan of teh killer bid – ie upping the ante with $2000 if bids are at $500. These tactics unnerve other bidders. Its all psychological warfare on auction day.
Remember not to get too emotional about a property and stick to your preagreed limit. There will always be another property of a similar ilk.
Thanks GGG,
good points. I’m certainly not thinking this will be the only good property to come along. It sounds like the auction process will be an interesting experience.
Thanks again for the feedback, I will certainly take this all down.
>> b
Hi TurboB,
don’t forget that there is no cooling off period with an auction. You must be prepared to leave a 10% deposit, unless you have made prior arrangements, and the contract is unconditional. Be very sure that it’s what you want before you make the winning bid. Good luck, and let us know how you get on.
Landt.Hey TurboB,
There are many tactics that people use in Auctions such as waiting till last minute, upping by higher amounts, putting a highish bid in the early stages to try and scare the chooks, bidding quickly and confidently to look like you will not back down. It really comes down to you in the end. I would just suggest you go to a couple of auctions before the one you are going to bid on to see how others do it and get a feel for it. It can be nerve-wracking but others find it fun. Just take note of the points above about cooling off, deposits and the like. It can be a little different to simply buying through an agent.
good luck!
the best tips i can give you?
* be prepared to walk away when you reach your limit
* take along an experienced thirs party who has no interest in the property who can help keep a lid on any ’emotive bids’ you may make
* as mentioned previously, attend as many aucitons in the area as you can prior to your one
Make sure you have done the appropriate inspecitons prior to bidding (pest building). Also, although the agent will not be accepting offers prior to the day, you can sometimes negotiate the deposit amount payable on the day if you are the successful purchaser (though the standard is 10%) The agent may choose not to negotiate these terms with you is there is sufficient interest in the property from other buyers.
Good luck with it, a heated auction can be one of the biggest adrenalin rushes for the buyers, sellers and agents alike.
e x
hi turbo,
i agree with GGG and others. If you unnerve with firm, loud and confident bidding, it can put you in the box seat. Even though it is for you PPR, dont buy emotion. Buy on the facts. This will also help calm some nerves on the day, as an auction can become bit daunting, if you let it.(ps; A rule of thumb seems to be the Trustee props.go to auction, so your agent may be correct.)
good luck. interested to see how you go.
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