What do I need prior to the auction

[islandgirl]

I'm intending on buying a property at auction on the weekend. As this is my first time I want to ensure I have prepared fully before hand.

Do I need to organise a bank cheque or anything or do the vendors normally accept a regular cheque?
Should I ask the agent for copies of anything before hand...e.g. the contract etc.? I don't want to sound too keen by ringing him and asking him unnecessarily.

I have done my due diligence and am pretty sure I know what the property is worth and have read all the auction tips on the forums, so apart from the above I think I am pretty prepared.

 

[Rob Williams]

You will need to contact the selling agent ASAP to find out the conditions of sale - eg, settlment, bank cheque/personal cheque/transfer options for deposit, deposit amount etc.
If you wish to vary any of these standard terms, you will need to get approval before auction day, otherwise you'll be stuck with the standard condition, which may not suit you.
I'd also be thinking of a bidding strategy on auction day. Get there early and watch the other buyers. See who's really interested so you know who the competition is. Work out if you want to go in early or open the bidding to signal your intention as a serious buyer. Or wait until the hammer is about to drop, then come in out of nowhere with a bid quite a bit higher than the previous bid, but still within your range. This tactic can sometimes break the rythm of the auction and it's $1k or $500 rises. While the other bidders are doing their sums, the third and final call goes out and the hammer drops.
You need a plan. Winging it on auction day isn't a good strategy, in my opinion.

Rob

 

[chrispy]

I went to an auction last Saturday at which I bid but was unsuccessful.

Prior to auction I:

1) Established reserve price
2) Obtained a copy of the contract and had my solicitor check it out
2) Contacted my mortgage broker and had the finance arranged
3) Took a builder to the premises and had a building check

On the day it did not matter what strategy you had there was one chap who was determined to buy and just countered any bid!!

Good luck

Chris

 

[fernfurn]

Funny this should come up as I logged on to ask an auction question: are they different to Victoria? Know the strategy backwards in Vic, but first time in Qld. Only intend bidding if they are giving it away, but would need to be registered to be in it. The house is solid brick with only some internal walls upstairs which we'd intend to pull out anyway so dont intend to do a termite check.
The agent tells me it is against the law up here to give a reserve (fair enough) but they wont even give an expected price range which I think is dumb and a waste of everyone 's time. They reckon they are going to sell on the day as it is a deceased estate and there are 10 beneficiaries who live all over Oz and so cant get it together afterwards to decide what to do if its passed in. Given that most the RE where I am has dropped dead (my daughter tells me the same in Vic) do I really believe they will sell at any price.
It is extremely dated and a weird floorplan and would require an expert (builder etc.) to make it into something, so there will be a limited market for it. Theres 5 other "Development" houses/blocks within streets distance sitting on the market so developers have their pick and I wouldnt think would pay top dollar for an existing house to pull down
So what is the structure of an auction in Qld
Do they declare when the house is 'on the market' up here.
Are the vendors allowed 2 bids?
Do they increase the bid in fixed increments, or are you allowed to shout out say an increase of only $1,000
Do they play the old trick of going once, going twice, oh I will just go and talk with my vendor?
Are they allowed "dummy bids" by a friend which has been outlawed in Vic?
I would really like to hear the subtle signs and tricks you have picked up for judging what is happening through an auction

 

[islandgirl]

Celica
Go to the website www.onthehouse.com.au - you can do free property searches here. You can find out what they paid for the house and when and also what all the neighbouring houses went for. This should give you some basic information. You will need to have a look at the other houses naturally to compare values

 

[fernfurn]

thanks very much for that, but dont find previous price relevant as vendors want todays pricing. What I really wanted was the structure of an auction up here, - refer my email for questions I need answers to. Thanks once again, I will log on out of interest