Auction questions

[tez]

Hi all,

There is a auction coming up which I may want to bid at although there's a couple of questions I have regarding auctions.

- apart from using a buyers agent, if I decide to send a family member to bid for me (cannot attend due to work commitments) how can this be done, and what happens at the fall of the hammer if I am successful? Do I then just go and sign the contract ASAP?

- in terms of finance, as I understand, the 10% is normally paid straight away? Although until contract are signed, Im assuming my bank wont give me unconditional such time? I have pre approval from the bank, although I just dont want to pay 10% and then find out I cant get finance.

Thanks

 

[Propertunity]

if I decide to send a family member to bid for me (cannot attend due to work commitments) how can this be done, and what happens at the fall of the hammer if I am successful?

You need to do a Power of Attorney so your friend can both bid & sign on your behalf

Do I then just go and sign the contract ASAP?

Nope - too late. The holder of the POA signs

- in terms of finance, as I understand, the 10% is normally paid straight away?

Yes

I have pre approval from the bank, although I just dont want to pay 10% and then find out I cant get finance.

You need to get your finance sorted & a valuer out there prior to auction.

Also have a read of this thread: http://www.somersoft.com/forums/showthread.php?t=54874

 

[Collector]

There is a way with out needing a POA.

Get a copy of the contract from the agent prior to the auction - sign where applicable - leave the price blank.

Give your friend a letter giving him/her authority to bid on your behalf, and give him the copy of the contract.

If you are successful your friend can fill in the price details.

 

[Jacque]

All you need is a letter of authority for whomever is bidding for you and check beforehand to see if the auctioneer will sign on your behalf if you're successful. Best of luck.

 

[Dazz]

what happens at the fall of the hammer

Absolutely nothing other than the auctioneer hitting something (his hand, a board etc).

If you wander inside and offer 1K more to the Vendor, they are quite within their rights to accept.

Banging a hammer means diddly squat legally, except if your thumb is underneath it of course. It's just part of the auctioneer's theatrics.

 

[Nikolina]

Hi all,

There is a auction coming up which I may want to bid at although there's a couple of questions I have regarding auctions.

- apart from using a buyers agent, if I decide to send a family member to bid for me (cannot attend due to work commitments) how can this be done, and what happens at the fall of the hammer if I am successful? Do I then just go and sign the contract ASAP?

- in terms of finance, as I understand, the 10% is normally paid straight away? Although until contract are signed, Im assuming my bank wont give me unconditional such time? I have pre approval from the bank, although I just dont want to pay 10% and then find out I cant get finance.

Thanks

Just reading up on this thread. Ive never been to an auction before, I assume you have to have an open check book to pay the 10% straight away? Is that correct?

 

[Ana]

I read this post and thought it might be beneficial to let people know that you don't have to pay 10% deposit at auction. That is a guideline only. We mostly pay 5% only which means that the rest of that money can sit in our bank account earning us interest in the meantime. All you have to do is speak to the agents selling the property before the auction and ask them if the vendors are ok with 5% deposit. Please note, that you can't do this once the auction has taken place and you are the winning bidder - you need to have negotiated that with them before the auction actually starts.

Wishing you every success,

Ana Stankovic

 

[tez]

Just reading up on this thread. Ive never been to an auction before, I assume you have to have an open check book to pay the 10% straight away? Is that correct?

Well mine was a interesting experience. First of all, it was my very first auction and I did it over the phone with the real estate agent. Just had to sign some docments beforehand.

The auction itself there was a stuff up as to if my deposit was going to be 5% or 10%. Either way, I just got a bank cheque drawn up for 10% of the maximum I was willing to bid up to (considering the building and pest reports, value etc). If this was significantly higher then I would just get a refund from the agents trust account. I guess that helped because I set a maximum value before the auction and stuck with it.

In any case, I tried to negotiate 5%, but the lawyers would only agree to 10% (mortgagee sale).

 

[dupli]

Pre-sign the contract?

It occurs to me, couldnt someone just get a copy of the contract beforehand, and sign it, the trusted friend/relative can ensure the correct number is filled in if you win at auction.