Purchasing a property at auction can be a little scary. We understand that – the notion of bidding against another bidder can be a little overwhelming. We have compiled a list of questions that we are often asked from purchasers in the lead up to an auction. We hope you find them helpful – and if you have a query about something and it is not covered below – don’t hesitate to get in touch with us, or the agent selling the property.
DO I NEED TO REGISTER TO BID AT AUCTION?
Yes. You must register providing your name, address, contact phone number and proof of identity. All Ouwens Casserly properties have bidder registration forms available prior to and on auction day.
DO I REQUIRE A BIDDING NUMBER TO BID?
Yes. Once registered to bid you will be provided with your bidding number which identifies you as a bidder at the auction.
WILL THE AUCTIONEER ANNOUNCE WHEN THE RESERVE PRICE IS REACHED?
No. The reserve price is a confidential amount and will not be disclosed.
WILL THE AUCTIONEER USE VENDOR BIDS?
If the bidding is competitive with multiple bidders, the auctioneer may not use vendor bids at all. However, if no one opens the bidding, the auctioneer may exercise their right to bid on behalf of the vendor and these bids will be identified as vendor bids, ensuring total transparency.
HOW MANY VENDOR BIDS CAN AN AUCTIONEER MAKE?
Depending on the competition, the auctioneer has the right to exercise up to three vendor bids to encourage bidding into the selling range.
IF I AM THE ONLY REGISTERED BIDDER, WHY SHOULD I BID?
If the auctioneer has stated that the highest bidder shall have the first right to negotiate, at either the reserve or amended reserve, as the highest bidder you will secure the first right to negotiate with the vendor prior to the agent entering into any negotiations with any other interested parties. It is imperative that you bid to take advantage of this negotiation position, otherwise you could be just one of several interested parties attempting to negotiate after the auction.
WILL THE AUCTIONEER ANNOUNCE THE PROPERTY IS ON THE MARKET AND GOING TO BE SOLD?
Not necessarily. If you intend to hold back from bidding in anticipation of this announcement, you run the risk of losing the property as the auctioneer has no legal obligation to make this announcement. If you wish to purchase the property, you must bid.
WILL THE AUCTIONEER HAVE A MID-AUCTION CONFERENCE WITH THE VENDOR?
Possibly. Depending on the activity of the auction and vendor instructions, the auctioneer may simply call three times and sell to the highest bidder without any further reference to the vendor.
DO COOLING OFF RIGHTS APPLY AT AUCTION?
No. You will be required to sign an unconditional contract and no cooling off period will apply.
DO I HAVE AN INSURABLE RISK FROM THE FALL OF THE HAMMER?
Yes. If you are the successful purchaser we strongly advise you to organise insurance preempting your purchase of the property – you have an equitable interest in the property from the fall of the hammer.
WHAT DO I NEED TO DO AFTER PURCHASING THE PROPERTY?
You will need to immediately sign the contract and pay a deposit of 10% of the purchase price unless the vendor has accepted other deposit terms prior to the auction commencing.
If you are looking to buy, check out our available properties here and sign up for buyer alerts here.
The places in which we live come to define chapters of our lives and when we decide to move, it signifies the end of one chapter and the start of another. From everyone at Ouwens Casserly, we wish you the best of luck during your home buying journey and if we can be of any assistance to help you find that perfect place to start your next chapter, please visit www.ocre.com.au or call 08 7070 6488.
