If your chosen method is buying from an auction, it’s important to be aware of what is needed when you bid on a property. Once you have proceeded through the points highlighted in our auctions page here, you will be ready to bid on your chosen property.
Tips to bidding at auction:
There will be a reserve price for each property, this will usually be exceeded but do not be afraid to bid under it. If no one bids higher you can stick around after the auction to see if the seller will still accept your bid, as sometimes they will accept the offer closest to the reserved price.
If there is a property that you plan to bid on, try and decide on a figure that would be the absolute max you will be willing to pay for it prior to the auction taking place. Due to the sheer competitiveness of human nature, it’s not uncommon for individuals to enter a bidding war, which eventually results in them paying more for a property than they originally intended to. Although some present at the auction may be property enthusiasts, you should not assume others are experts. Develop your own opinion on the value of the property, if others decide to bid more than you think it’s worth, let them have it.
After the auction hammer falls:
Once it’s confirmed that you are the highest bidder and the hammer has fallen, you will then have a few weeks to make the payment. 10% of the payment will have to be made on the day of the auction, with the following 90% required to be paid within 3-4 weeks after. The time you have to make the payment can fluctuate between auction houses, so be sure to confirm how much time you have to complete the transaction to avoid any confusion. If this payment is not made within the timing requirements, you will lose your 10% deposit. You also risk being charged for the costs of re-selling the property, and if the second accepted bid Is smaller you may even be charged the difference.
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