Buying at auction

[srini]

Hi all,

We're considering buying a new PPoR at auction next weekend (in Melbourne). I'm reading through auction advise threads here to understand as much as I can about the psychology and tips.

I've attended a few auctions today just to understand the process.

I've got a few questions.

1. In case we win the auction, do we need 10% deposit on the day?
2. Do we need a bank cheque drawn up ready to go?
3. Whose name should the cheque be drawn? Should I just ask the agent?

Any other tips/advise would be much appreciated.

 

[Peter_Tersteeg]

1. In case we win the auction, do we need 10% deposit on the day?
2. Do we need a bank cheque drawn up ready to go?
3. Whose name should the cheque be drawn? Should I just ask the agent?

1. The amount is negotiable, but out of courtesy, you should talk to the agent prior to the auction if you'd prefer to put up less than 10%.

2. I've never brought a cheque book to an auction. I allow them get my identification and contact details, then meet them at their office (one followed me home once) later that afternoon. Most will allow a personal cheque, nobody shows up with a bank cheque.

3. The cheque needs to be made out to the agents trust account. They'll give you the details. Make sure you get a receipt.

 

[srini]

Thanks a lot Peter. That helps a lot.

Also, just spoke with ANZ and they can give me a "Counter Cheque" which is just like a personal cheque, but I can pick it up over the counter.

That way, the payee, amount etc. can be filled out by me when we find the right property. ANZ do that for free unlike a bank cheque.

Thanks for the info. I'll negotiate a lower deposit with the agent.

Thanks
Srini

 

[Aaron_C]

Just use a personal cheque. Don't overcomplicate things.

 

[ritchie77]

But what happens if you dont have a personal cheque account?

I dont have one and when asked my Bank they did not do counter cheques despite having funds in the account..... What options does that leave? Just turn up and bid then pay Monday morning???

 

[smy7484]

You can get a personal cheque within a week, may be 3 days.
If not, get your solicitor to confirm the vendor is willing to accept bank cheque on Monday. Bring that confirmation letter from the seller solicitor to Auction.

 

[Aaron_C]

Yes just leave your details and pay on monday.

 

[Brady]

Just use a personal cheque. Don't overcomplicate things.

A counter cheque isn't complicated.

It's the same a personal cheque but manually printed up straight away for those that don't have a personal cheque book and time to wait.


It's actually pretty good that the bank offered this.

 

[brahms]

A counter cheque isn't complicated.

It's the same a personal cheque but manually printed up straight away for those that don't have a personal cheque book and time to wait.


It's actually pretty good that the bank offered this.

+1

did exactly this a few weeks ago, no hassles at all, who has a cheque book these days......

no cost from CBA, so cheaper than doing the bank chq thing.