Auction preparation?

From: J Parker


I am about to enter the wonderful world of auctions (not!) by attempting to buy a house at one next week (providing the finance comes through for me!!)

To date, I have got a copy of the front page of the contract and the survey and perused them, arranged for a building and pest inspection and spoken frankly to the real estate agent about interested parties etc. The property has a flat attached and would be providing a positive income from Day 1 for me- if I get it at the right price!

Should I be employing a solicitor to look over the entire contract for me? When I asked the RE agent for a Vendors Statement once again I was met with confusion. Obviously these are not used in NSW or are not common? (same as Sec 32 in Vic) It is a deceased estate.

If successful with approval and building reports I will be sending a friend to bid on my behalf. Anyone with any answers to my questions or auction advice please feel free to answer here!!
Thanks, Jacque :)
 
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Reply: 1
From: Paul Zagoridis


Vendor's statements are not used in NSW.

Always get a full contract not just the front page. Inside is where the special conditions lie. How will you learn what to watch out for if you don't read a lot of them?

If you don't know property contracts, it is hard to say you don't need a solicitor to look at it. Talk to a solicitor and get a bulk deal for them to look at some number of contracts for you (and they also get the conveyancing).

After a while you should get a feel for what is "standard" and then you can learn to ask a solicitor about the "strange" things.

e.g. Learning the meaning (the hard way) of "in this matter time shall be of the essence" cost me $4,000 the first time. ouch!

Paul Zag
Dreamspinner
The Oz Film Biz site is archived at...
http://wealthesteem.dyndns.org/
 
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Reply: 1.1
From: J Parker


Thankyou Paul. I have taken your advice on board and am getting my solicitor to look it over.
Cheers, Jacque :)
 
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Reply: 1.1.1
From: Joanna K


Good luck Jacque,

Good that you're getting a friend to do your bidding for you. It's very easy to get swept up in the excitement at an auction.



Kind regards
THE RENTAL SPECIALISTS

Joanna Karavasilis
Principal

www.rentalspecialists.com.au
rentals@rentalspecialists.com.au
 
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Reply: 1.1.1.1
From: Waverly Bay


Agree Joanna, although if the friend is not skilled in the auction room..... one may consider using the services of a buyers agents who are skilled in the theatrics and art of auctions. Practice makes perfect...and a good buyers agent would have honed their auctions skills at a level far more polished than the mug bidder. In sydney, an auction appearance by an experienced buyers agent is only $250.

Definitely worth the money...

Back to the original post - - - i guess there are heaps of things u can do pre auction to increase your chances of success and/or minimise unnecessary search/legal expenses.

One of my favourites is to arrange an inspection out of standard set viewing times. This increases the chances of the owner being home...and ensures no other potential buyer is present. Eg - last week we inspected a property in north shore sydney. My wife cornered the agent while i sneaked upstairs to chat with the 15 year old son. After pleasantaries were exchanged on his surfing and car posters... i was able to extract from him the sort of price his parents were looking for, the reason for the sale (divorce) and the difficulties they had renovating cos it was heritage listed !

On another property, we snuck around 1 hour before the open inspection time - and managed to convince the owners to let us in for a quick "private" inspection. Owners inadvertently disclosed all.... including the frequent hazards of frogs and other creatures jumping into their backyard ..and some flooding problems he had with the nearby creek. He also disclosed that he had bought elsewhere and gave me the $$ figure of what he was prepared to negotiate from.

Direct face contact with a vendor can be an absolute gold mine of information - which is important for auction and non auction purchases, particularly in areas like sydney north shore where agents as a general rule give very little away. Also, as Rob mentioned in another post, you can negotiate directly with the vendor. Nothing like some good one-on-one sparring bordering on undue influence (careful !)

Getting face contact with the tenants is also good - they are often more than willing to give you the "warts and all" tour of the property !

cheers

Waverly
 
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Reply: 1.1.1.1.1
From: J Parker


Sounds like some pretty naive owners you ran into there WB- lucky you! As for the tenants, well they definitely wouldn't be doing the vendors any favours, as most of them would be scared off by the threat of vacant possession!

One house I looked at had such foul tenants (the vendor's daughter and her entourage) and such a disgusting odour (dogs sleeping in the beds, inch thick dirt etc) that I was truly turned off. Wasn't a good deal anyway but the point was that the tenant didn't want to be kicked out of her very convenient situation (dad subsidising the rent heavily in a town with no rentals available) and was thus doing her best to ensure that the house didn't sell.

Thanks for the tips everyone!
Cheers, Jacque :)
 
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Reply: 1.1.1.1.1.1
From: Joanna K


Hi Jacque,

How did the auction go? I'd be interested to hear what your experiences were.


Kind regards
THE RENTAL SPECIALISTS

Joanna Karavasilis
Principal

www.rentalspecialists.com.au
rentals@rentalspecialists.com.au
 
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