6 MASSIVE Mistakes When Buying At Auction



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).

8 comments

  1. Great video! I didn't realise pre-auction offers were considered to be a no-no. My neighbours house sold before Auction so I assumed it was common practice

  2. Yew josh made it onto a video! Fantastic vid lads, keep it up! Great tips and btw your video photos are perfect! The blue, the caption and the style. Stands apart from all the others. The little things lol

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