Auction Ready Checklist
1. Pre-Auction Preparation
Market Research:
- Analyze current market trends and property values in the desired area.
- Attend auctions and consult with real estate agents to gauge market conditions.
Property Shortlisting:
- Identify properties that align with your investment goals.
Legal Preparation:
- Hire a solicitor or conveyancer.
- Thoroughly review the Contract of Sale and due diligence checklist provided by the seller or agent.
- Investigate any legal issues like easements or special conditions.
Property Inspection:
- Conduct a detailed inspection.
- Opt for professional building and pest inspections.
Financial Arrangements:
- Secure loan pre-approval.
- Ensure availability of the deposit (commonly 10% of the purchase price).
Understanding Auction Process:
- Familiarize yourself with auction rules and norms.
- Review the auction information statement and Sale of Land (Public Auctions) Regulations 2014.
Budget Setting:
Bidding Strategy:
- Plan how you will approach the bidding process.
2. Considering Pre-Auction Offers
Making Pre-Auction Offers:
- Understand the process for making offers prior to auction.
- Remember, if accepted, there is no cooling-off period if less than three clear business days before auction.
3. Auction Day
Early Arrival:
- Do a final check of the property.
- Verify any last-minute changes.
Registration:
- Register as a bidder and get your number.
Understanding Auction Conduct:
- Pay attention to the auctioneer’s announcements about auction conduct.
- Remember, it’s illegal to disrupt the auction but permissible to ask reasonable questions.
Bidding:
- Stick to your financial limit.
- Understand the auctioneer’s method for handling bids.
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4. Post-Auction
Completing Legal and Financial Formalities:
- Finalize mortgage details.
- Ensure all contractual conditions are met.
Settlement:
- Arrange for balance payment and transfer of title.
- Ensure property insurance is in place from the auction date.
5. Additional Considerations
Vendor and Co-owner Bids:
- Be aware of the rules and announcements regarding these bids.
Dummy Bidding:
- Understand what constitutes illegal dummy bidding.
Auction Language Understanding:
- Know what “on the market” and “passed in” mean.
When is the Property ‘Sold’?:
- Recognize that the sale is only final when both parties have signed the contract and the deposit has been paid.
Paying a Deposit After Auction:
- Be prepared for immediate deposit payment, typically 10% of the purchase price.
- Check with the agent for preferred payment methods.
Post-Auction Negotiations:
Market Variations:
- Keep an eye on any market changes between the auction and settlement.
Backup Plan:
- Have a plan in case you don’t win at the auction.
Post-Auction Opportunities:
- If the property is passed in, be prepared to negotiate directly with the seller.
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