Hi everyone,
I normally buy on a standard contract, with (usually) $1000 down and a 30-42 day settlement with the balance paid on settlment.There is a property that I'm very interested in going to auction on December 13. What are the usual finance terms for auctions?
ie, do I have to be pre-approved for purchase? Do I have to put more than $1000 on the day???Any comments would be greatly appreciated.
Thanks
RLUsually 10% deposit from you when the hammer falls and the Auctioneer says sold. Balance within 30 ,60 or 90 days.
Get your finance pre-approved so you know what you can borrow up to and also what is your absolute maximum you can bid at the auction without getting into trouble due to finance.
Ask the real estate agent for a copy of the contract and ask what the terms of the settlement are so you can get your solicitor to check over the contract before the auction occurs and get the finance organised.You might want to get a building and pest inspection prior to the auction occurring.
Check if you can use a deposit bond with the real estate agent.
If you do not know what a deposit bond is do a search on google.By law the terms of settlement as mentioned at the start of the auction but this is not helpful if you need to know earlier than this and in all the excitement of the Auction you may not remember the blurb that is stated by the Auctioneer.
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