Prior offers for property on auction

[boods99]

Actually I need to get clarification on this - so far all I can see is that there is no COOLING OFF PERIOD, but does not say anything about conditions, other than SALE AT AUCTION:

http://www.consumer.vic.gov.au/CA25...erty~&2=10-Buyers+and+Sellers~&3=60-Auctions~

If you purchase a property that has been offered for sale by public auction either at the auction or within 3 clear business days before or after the auction, there is no cooling off period.

At what point is the property sold?
When the auctioneer has reached, what seems the final bid, he will announce, "Going once, twice, three times…SOLD!". There are no further offers accepted after this point, however this is not a legally binding contract until the buyer and seller have signed the contract of sale.

Because this is an auction, the buyer cannot make the contract subject to conditions nor is there a cooling off period.



Cheers,

The Y-man

This is where our respective states differ as there is no cooling off period in WA for private sales or auctions.

Boods

 

[The Y-man]

Thanks Wylie. Maybe its me, but I just don't want to buy at an auction. That will probably mean my dream house would walk away in front of me, but I am firm on this.

Can I ask a question? How high can the reserve price for a property that has been advertised for, say 460+, be? Are there any legal limitations?

Is this going to be your own home?

460+, you might think the vendor is expecting mid fives...

Cheers,

The Y-man

 

[Leegirl]

Yes Y-Man, it is going to be my first own home.

That sounds reasonable then........a reserve close to mid-fives. Just found out something interesting- someone I know had also expressed interest in the property, but their price was lower than myself. And strangely, she didn't get the 'courtesy' call from the agent yet, while I got the call y'day. Hmmmm......interesting, isn't it?

 

[The Y-man]

Yes Y-Man, it is going to be my first own home.

You probably mentioned above, but what ar the conditions you are wanting to put on your offer?

Cheers,

The Y-man

 

[Leegirl]

I am looking for 'subject to building inspection' and probably 'subject to finance'......because I have my pre-approval, I could probably put it subject to bank valuation.

 

[RedCat]

I watched a townhouse valued at $800K+ in Richmond VIC sell at auction for $1.4M two years ago. Same house was quietly being advertised last week at a real estate agents - flyer only with no online presence.

 

[Amadio]

I just don't want to buy at an auction.

I agree with you.

In fact, if you don't intend to buy at auction it would be a big mistake to even go. You have shown your hand to the agent, and they will pull out all stops, which probably includes fake bidders, to make sure the bidding goes at least as far as you have already indicated you are willing to pay and try and push you further. The Melbourne auction scene is pretty ugly. We saw some doozies, and the law against pulling bids out of trees and lamp posts didn't stop a thing.

Be very careful.