How to price a pre-auction offer?

This is great advice, thanks. The property has just been listed (yesterday I believe). The auction is August 9th, hence why I'm trying to move fast.
 
To save posting another thread...

Assuming I participate in the auction and win, what do I need to have ready BEFORE?

I have accounted for these:
  • B&P report done
  • Contract reviewed by legal
  • Pre-approval/finance sorted
  • Money moved to account that has cheque capacity
  • Blank cheque prepared for auction (I'm assuming I need a physical old school paper cheque?...Gen Y here)
  • Lawyer for conveyancing at the ready

Have I missed any?

When I actually win an auction and go into the property with the vendor/selling agent, what actually happens? Who should I have with me? How do I protect myself at this stage?
 
When I actually win an auction and go into the property with the vendor/selling agent, what actually happens? Who should I have with me? How do I protect myself at this stage?

When you buy at auction you buy the property unconditionally, so make sure you do all your searches, finance etc before you make the winning bid.

Once the hammer comes down and you have won the auction you will then sign the contract. Depending on state leglislation, if you get cold feet and refuse to sign then the auctioneer can sign on your behalf and you have bought a house.
Marg
 
When you buy at auction you buy the property unconditionally, so make sure you do all your searches, finance etc before you make the winning bid.

Once the hammer comes down and you have won the auction you will then sign the contract. Depending on state leglislation, if you get cold feet and refuse to sign then the auctioneer can sign on your behalf and you have bought a house.
Marg

Sorry I realise those points Marg. I guess what I was asking was how I determine what is standard process versus what is the auctioneer trying to a dodgy somehow. I assume I will be alone and I have no concept of the process other than 'go inside and sign some things'.
 
You don't need a paper cheque. You must pay the deposit by 5pm the next business day (that is my understanding anyway in Queensland). You can us bank transfer or get a bank cheque to the real estate office next business day, but if it comes to that, ask the agent anything you need to know beforehand.

As for protecting yourself, by this stage you have bought a house, so Marg is correct that if you go and bid, you have done everything you need to have done to feel comfortable about committing totally to the purchase.

I don't think you need to nominate a solicitor on the spot, but I like to know who I'm using and have it ready.
 
My experience

I have finally received the formal approval from the bank and awaiting settlement. So I'm comfortable to share my story now. I think every offers are different and largely depends on the seller and agent. I made three offers and had one accepted.

1) Agent quoted a price above 1.1m, my offer was slightly above that on the first week of open. Offer got rejected. On the day of auction, there were only 3 registered bidder and no other bidder except me. Property passed in, and from what I gather, the reserve was 1.4m.

So the offer was never gonna get accepted anyway.

2) Agent shopped for offer on the final week before auction. I read that as a lack of interest for the property, so I went in with a price that I think is within a reasonable price range but still in the lower end. Got rejected cause of competing offer so I bid again with a price that I think was mid-high reasonable price. The property was sold 45k above my second bid (prior to auction). Which I think is at the high range of reasonable price.

So apparently the other interest was real. Price for properties around the area had been going crazy above what I estimate as reasonable price. So it is really hard to tell if the price would go higher or lower then the offer. Seller probably wanted an end to the uncertainty of auction, hence the request for offer prior to auction.

3) Offered right after the first open. Asked for a price range, agent didn't provide any but quoted a couple of sales he think is comparable. Went in with an offer that is at the higher end of my reasonable price range and told him I won't be attending the auction because of some other reason (which is real). I didn't expect it to be accepted as the seller doesn't seems to be in a hurry to sell.

I am still not sure why it was accepted, maybe I priced it way off and I paid too much for the property? Maybe the agent conditioned the seller into expecting a way lower price? Maybe the seller was totally inexperience in the buying/selling process? Or maybe a combination of many reasons.


I think the most important thing is to do your homework, have a price in mind and keep trying until someone accept your offer. If you are fixated on a property that you want, the only way to get it is just to pay more for it.

I hope at least someone find that helpful.
 
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