What you need to know about buying at an auction?

Buying a property through Auction can be confusing and overwhelming. Properties sold at auction function different to private sales, therefore it is vital you have done your homework before making an offer on the day. Here are a few tips to ensure you are prepared for the big day:

Auctions can be an overwhelming, loud and fast paced event. It is always a good idea to familiarise yourself with the process by attending other auctions.

In south Australia, all potential buyers will need to register to bid with the property agent prior to auction. You will also be able to register a bidding agent to bid on your behalf on the day.

The sale of a property through an auction requires buyers to have all their finances ready prior to auction. Since the contract of sale is unconditional, the successful bidder will be unable to arrange financial matters once the contract has been signed. If you intend to take out a loan to purchase your new home, you will need to arrange pre-approval of the loan. The 10% deposit will also be required on the day of the auction.

In South Australia, cooling off periods do not apply for properties sold at auction. Instead, the Form 1 will be available at the real estate’s office at least 3 days prior to the auction and at the auction 30 minutes prior to the auction starting. Since the cooling off period is void, it would be a good idea to arrange building and pest inspections and home insurance prior to auction.

Speak with your conveyancer and let them know you intend to buy at auction, you should also advise them once you have successfully purchased a property through auction.