You need to prepare before buying a home at auction. Try to go to a few auctions first to see how they work.
00:00 6 MASSIVE Mistakes When Buying At Auction
00:51 1. Pre-Auction Offers
02:16 2. Not Done Enough Research
04:40 3. No Cooling Off Period Post Auction
05:37 4 . Bonus Tip
There is no cooling-off period for buying at auction. If you are the successful bidder at the auction, you will have to settle the contract even if:
the house doesn’t pass inspections
you change your mind
you can’t afford it.
The cooling-off period also does not apply to a private treaty contract:
entered into within 2 business days of an unsuccessful auction of that property
in which the buyer was a registered bidder at the auction.
The terms of sale usually require you to bid on an unconditional basis. This means you cannot have any conditions, such as:
subject to finance
subject to the completion of another sale.
Before the auction
Before the auction, make sure you:
inspect the property
arrange your finance
get a property valuation
do your own research of the market
get a copy of the contract
get legal advice about the terms and conditions in case you’re the successful bidder.
Make sure you ask the agent about:
how much deposit they will ask for (as a percentage of the winning bid)
how you’ll need to pay it (a personal cheque, bank cheque or deposit bond is usually okay).