For most people, buying a home is the biggest purchase of their lives.
Auctions are a popular way to buy a house.
One reason is an auction can shorten a long and tedious house hunt to just an afternoon’s work.
However, bidding and buying at auction is like sitting for an exam.
Success needs homework: including market research, understanding the bidding process and having the right amount of finances.
ਘਰ ਦੀ ਬੋਲੀ ਦੇਣ ਵੇਲੇ ਹੱਥ ਚੱਕਣ ਤੋਂ ਪਹਿਲਾਂ ਕਿਹੜੀਆਂ ਗੱਲਾਂ ਦਾ ਧਿਆਨ ਰੱਖੀਏ?
Experienced Sydney western suburbs’ Real Estate principal, Elie Kaltoum, says the best way to learn is to first watch some auctions.
Elie Kaltoum says timing is key.
Arrive half an hour before it starts to have enough time to make a final inspection of the property on offer.
It is also the time to get a last look at the documents of sale, such as the terms of settlement – because after the auction, the conditions cannot be changed.
Elie Kaltoum says interested buyers should first get the necessary checks done.
On the day of an auction, potential buyers have to register with the auctioneer, produce some proof of identity and get a number for the bidding.
Most sellers set a reserve price, which is the minimum sale price that they will accept.
If the bidding reaches the reserve price, the property will be ‘on the market’ and must be sold in the auction.
Nepalese-Australian Rajish says an auction isn’t a comfortable situation.
He outbid on several occasions for a property and says he was disappointed.
He warns that it’s important to keep a cool head during an auction and stick to your budget.
Rajish says instead of auctions, he prefers the agent to negotiate on his behalf with a seller.
Greek Australian Giota is more optimistic after going to an auction.
She says if bidding at an auction is the only way to get the house she wants for herself and her family, she will fight for it.
If a registered buyer bids and the offer gets accepted at the auction, the new owner must meet as quickly as possible with the auctioneer.
Unlike private treaty sales with a fixed price, there is no ‘cooling off’ period at auctions; the successful bidder has to settle the contract.
If a property does not sell under the hammer Elie Kaltoum says 70 per cent of homes find a new owner in the two weeks after the auction.
In a situation like this, the real estate agent will negotiate a price which reflects fair market value between the seller of a property and the prospective buyer.
