Hey,
As I am yet to buy my first house, I have a question in regards to when purchasing a house through auction. Is there the opportunity to set terms for the sale? i.e on the outcome of a building inspection etc. Or are these inspections done before the auction?
My question is then if these inspections are done before the auction would this not be showing a little too much enthusiasm and cause an agent to take this into account when setting a reserve price?
HI,
Auctions are a very strategic event, Sure the weekend or weekend inspections may be quiet but what about private appointments? If you don’t live to far from the home you want to purchase it may be worth it every night after 6 to go past the house and just have a quick look. When I buy properties I usually go to a couple of private inspections and a couple of opens, This will give me an idea on how much interest the house has.
The agent will only suggest what the reserve price may be but at the end of the day it’s the vendor who must accept this…
Also are you or have you considered putting an offer before the Auction?
For example if you put in a private bid before auction, you may be put in terms like “pest and building “ inspection, Finance clause, the amount of deposit you want and even what settlement you looking for.
If the vendor accepts the bid your laughing and if they don’t this may give you some leverage, If the auction happens and no one bids then its fair to say the ball is in your court….
Good luck
Jpcashflow | JP Financial Group
http://www.jpfinancialgroup.com.au
Email Me | Phone MeYour first port of call in finance :)
With auctions, you generally pay your deposit and exchange on the day – if you can't proceed with the purchase, you'll find yourself in a bit of trouble.
Best to get a preapproval in place just as added reassurance.
Best of luck!
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Yeah so you have to spend money on building and pest inspections, no it doesn't show to much interest so long as you are vague with the agent, only bid after the reserve is met, and don't over spend. Buying first house though auction is brave, don't get hurt..
Best of luck!
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