Are you planning on bidding at auction for a property on the Gold Coast, or somewhere else in Queensland? Put yourself in the best position to win the auction at the right price with a strong auction strategy. We’ve developed this checklist to help you do just that.
Auctions are a popular method of sale in Queensland. A property that goes to auction generally has a larger pool of potential buyers so competition at the auction can be pretty hot! It’s important to understand the process of an auction because if you’re the successful bidder you’ll be the new owner of the property the minute the auctioneer yells SOLD. Even if the house doesn’t pass subsequent building & pest inspections, you decide can’t afford it, or you simply change your mind. There’s no cooling off period, or no ‘subject to finance’ clause. The purchase is unconditional, so make sure you’re ready for it.
The successful bidder on auction day will be required to sign the Contract of Sale and pay the required deposit on the spot. The majority of auction-based sales will then have a 30 to 60 day settlement period, which will be detailed as part of the Contract of Sale (so make sure you’re familiar with that before you bid!)
Don’t ever purchase at auction without you or someone you trust inspecting it first to make sure it meets your brief. You also need to make sure you’ve conducted your own building and pest inspection and engaged your solicitor to review the contract of sale. If you’re going to need assistance with financing, engage with your finance/lending partner to understand your borrowing capacity and get your finance pre-approval in place. This way you know for certain with your top price/maximum bid can be, and that there will be no delays or stress with getting your finance in place if you’re successful.
In Queensland, as per legislation governed by the 2014 Property Occupations Act, for sales via public auction, real estate agents cannot disclose any price expectations or the reserve price for a property they are taking to auction. As a buyer, it’s therefor essential that you’ve conducted your own comprehensive due diligence and market research of comparable properties to assess the price estimate of the property prior to bidding. Once you have a price estimate and financing in place, set a maximum price (bid) for yourself to make sure that you don’t overpay for the property.
Note that most finance lenders will engage a valuer to conduct a valuation on the property as part of their lending process, so it is critical that the price you pay is comparable to other sold properties in the area, otherwise you might not get the lending that you need to cover the price you’ve committed to at auction.
If you’re bidding at auction and interested to learn more about preparing yourself as a buyer for a property auction ion the Gold Coast, download our free checklist below or get in touch with Matt today for a chat about how he can help you with your auction strategy, or bidding on the day.
