5 or 10% at auctions?
- Thread starter Zhouse01
- Start date
Any deposit paid at auction goes comes off the amount due at settlement.
Bought at auction for $200K
10% paid means $200K - $20K deposit = $180K due at settlement.
How you are funding the purchase is a separate thing.
Most purchasers would prefer to pay as small a deposit as possible of course and a smaller deposit can sometimes be negotiated. Agents aren't keen on deposits that don't cover their comission
Hope that clarifies things a little.
Bought at auction for $200K
10% paid means $200K - $20K deposit = $180K due at settlement.
How you are funding the purchase is a separate thing.
Most purchasers would prefer to pay as small a deposit as possible of course and a smaller deposit can sometimes be negotiated. Agents aren't keen on deposits that don't cover their comission
Hope that clarifies things a little.
You just have to make sure you do it before the auction. The auctioneer will generally then offer that same thing to all bidders.
Also auctions - what's the story? If you win, do you have to present a cheque there and then or cash for the deposit? What if you're bank is arranging that all with equity etc? What happens if you don't? do burly men come and escort you from the building?
What are the rules, is the contract unconditional no arguments and no cooling off so tough nuts if the next day the roof caves in? When does your conveyencer get to check out all the documents or should that have already happened? But you wouldn't have the contract till Auction day??
Now, vendor bids, in Melbourne it seems they can have as many as they like. We watched the house across the road go to auction (passed in) with about 5 embarrassing vendor bids. Does this mean I could bid and think hey, that's a good deal and then each time they put a vendor bid on just to up and up it? How is that legal? - I don't neccessarily mean me personally but it might happen to some poor ppl out there.
for the deposit? What if you're bank is arranging that all with equity etc? What happens if you don't? do burly men come and escort you from the building?What are the rules, is the contract unconditional no arguments and no cooling off so tough nuts if the next day the roof caves in? When does your conveyencer get to check out all the documents or should that have already happened? But you wouldn't have the contract till Auction day??
Now, vendor bids, in Melbourne it seems they can have as many as they like. We watched the house across the road go to auction (passed in) with about 5 embarrassing vendor bids. Does this mean I could bid and think hey, that's a good deal and then each time they put a vendor bid on just to up and up it? How is that legal? - I don't neccessarily mean me personally but it might happen to some poor ppl out there.
Also auctions - what's the story? If you win, do you have to present a cheque there and then or cash
Well you have to be ready on the day with your money. If you have equity, you draw down a cheque or write it from your cheque book on the day. If the bank hasn't completed everything regarding re-finance and you don't have access to funds, then you can't bid.
And yes, you are taken to a cold, damp dungeon if you don't pay. Underbelly style
Contracts are all unconditonal, unless you make some prior arrangement. You would have access to the s32 & contract of sale prior to the auction. So auction day is not the forst time you see the docs.
Its legal because that's the rules. Is it embarrasing, not in my opinion. Ultimately the market will determine the price, if you think it is too much, and the vendor's bids take it above fair value, then theoretically people will away.
It's legal because at that exact point in time you assume you are about to buy something. Your assumption is wrong.
If the auctioneer hasn't openly and publicly declared that the property is now "on the market", then prior to that you are literally bidding to buy an item that is not for sale.....not so good. Cos it's not for sale, the Vendor is quite within their rights to get the price into a range that they are willing to actually put the property "up for sale".
Until that point is reached, you'll never know as a bidder - that's the bit that is uncertain.
Of course, the whole charade is a circus, this whole gavel slapping thing is a legal nonsense as well. Someone can refuse to sign the paperwork, or indeed there is nothing stopping a purchaser from offering the Vendor a higher price whilst they congratulate each other walking inside to sign the paperwork.
In fact, until a consideration figure is written on the contract and all parties to the contract sign the document, she's all up in the air.
