Hello everyone,
I've transacted property a number of times, but never by Auction. Sometimes I think I might get a better deal if i were prepared to go to Auctions. Here are my questions.
When you want to bid on a house at Auction, at what stage do you do things like building inspections etc? Do you need to do all your due diligence before the Auction or can you still write certain terms into the contract to make sure things come out the way you want them? Obviously you pre arrange your finance. Just curious about all the other things you might like a contract to be subject to.
After an Auction, can the agent tell someone who might ring them and ask what the sale price was or is this against the privacy act?
People who are experienced with both buying at Auction, and by private treaty (that's what non Auction is called, isn't it?), do you feel that either is more likely to favour the buyer? I occassionally see public trustee Auctions and repo Auctions and wonder if these in particular are good places to look for a bargain.
Do your transaction costs differ between Auction and non auction? Does the solicitor still get to do all their searches? Do you still get out if you are unsatisfied with the searches?
thanks in advance for your comments. By the way, I'm in QLD if that makes a difference.
SI'm pretty sure that you need to do your due dilligence before the auction. I suppose you could say you are buying "as is where is".
Going to auction is like doing a cash unconditional sale, there's no backing out mate, you're in boots 'n all and must do all your due diligence before you buy!
All inspections need to be done before you bid as it's too late afterwards, you own the property!
Yes, finance must be pre-approved before the auction.
In NZ, the sale price becomes public knowledge as soon as the hammer comes down, i.e. your agent can tell them the sale price. I suspect the same is true for you in Aussie too.
Personally, I prefer private treaty sales with no competition. I never do multi offers as you are immediately weakening your ability to get the deal. Same-same in an auction situation, you are bidding against other people who may have deeper pockets and less knowledge of the market price than yourself.
Transaction costs should not differ between auction or any other form of sale.
Yes, the solicitor still does the searches, but I'd recommend you have them check the title BEFORE the auction rather than after. You don't want to find a fish-hook once you own the property!
Happy bidding!
VickySo you have to go to the expense of carrying out your due diligence before the auction, on only the possibility that you might buy. I'm surprised that this is such a popular option, having learnt that. I guess I won't be just turning up at auctions on the hope that the place might go cheap.
Thanks for your contributions
S
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