These are popular as buyers are able to purchase a property quickly at a good price.
As a buyer you are able to make a pre-auction offer on the property. It would need to be an attractive offer to entice the vendor to sell prior to Auction Day.
Most of the time the owner sets a minimum reserve price. If the bids do not reach the reserve price the property may be passed in or “withdrawn”.
This will then provide the opportunity for you to negotiate with the vendor.
Properties sold by auction are not subject to conditions, which means that inspections must be done prior to the Auction. The purchaser will need to have the deposit cheque ready to go at the time of the sale.
Auctions do not have cooling off periods, which means you need to be sure you are completely happy with the property should you decide to purchase it.
It is important to ask the right questions when inspecting a property. This will help you to make an informed decision if the house is right for you and your needs.
Some important things you should look at are :
- How close is it to amenities, schools, shops, services etc
- Is it is a safe neighbourhood?
- Is it a busy area? Check if the traffic noise spills into the house.
- Is it a tight-knit community?
- Are the neighbours next door renting?
- Where’s the nearest hospital or medical centre?
- Is there adequate public transport?
- Is there any parking?
- Are there parks and other public spaces nearby?
- In which school zone does this property sit? Where’s the nearest school?
Some important questions you should ask the real estate agent are :
- Is the property insulated?
- What are council rates like?
- Does the property have any special restrictions?
- Are there potential zoning changes in the future?
If the property that you’re looking at is a unit or apartment, there are other pertinent questions you should ask:
- Does the body corporate allow pets?
- What are the strata fees?
- Does the body corporate allow barbecues and other outdoor events at the property?
- Is there car parking provided in the building?
- If you’re serious about making an offer on the home, it’s highly advisable you conduct a professional property inspection.