Auction is a form of marketing a property through intensive advertising mediums designed to capture the maximum attention of buyers within a set time frame. The process is a means of purchasing Real Estate through public negotiations to determine the true market value of the property.
The reserve price is usually set on the day of the Auction by the Vendor. The Real Estate Salesperson sometimes is unaware of the reserve; the only person who will know is the Auctioneer. The reserve is generally established by the intending Purchasers feedback.
Simply attract the attention of the Auctioneer by:
- putting up your hand
- by calling out
- nodding your head when you catch the Auctioneer’s eye.
The Auctioneer usually nominates the amount of the bid he is looking for. If you are the successful bidder, you will be asked to pay the deposit and sign the contract.
Yes, in most cases you can. You simply submit your offer to the agent on a Contract Note or Contract of Sale and if the price and conditions are agreed to, the contract is then completed and the property is sold before Auction. In fact, 50% or more Auctions are sold this way.
That’s okay. You can organise, through your bank or building society, approval to bid up to a price that you are prepared to pay. This offer would be subject to the Banks valuation. This is simple to organise and only takes a couple of days.
There are two answers. If you are in a sound financial position you may organise a bridging loan. The other way is to buy on a longer settlement date, giving you time to sell and to settle your house.
This is the price YOU are prepared to pay. Other people will perceive different values. Generally, your price will be established by what property has sold for around the area and also the particular features that the home offers you.
If the reserve is not reached, it is passed in to the highest bidder. The highest bidder then has the first right to purchase the property immediately after the Auction at the reserve price, otherwise the property will be offered for sale to all other interested parties.
The contract is the standard REIV contract. This contract is on display at the Auction. Attached to the Contract is a Section 32 or Vendors Statement. The usual conditions for purchase at Auction are (i) 10% of the purchase price paid as deposit: either by cash, bank cheque or personal cheque. (ii) Settlement date is usually 60/90 days from signing of the contract.
Your Nicholson Real Estate Property Consultant is specially trained to assist you if you have any questions or if you require further information about Auctions