Sale by Public Auction involves potential buyers assembling in the same place at a specific time and date and then bidding publicly for a property.
There will be a “Reserve Price” placed on the property prior to Auction. The seller will sell the property to the highest bidder once bidding reaches the reserve price. If bidding does not reach the reserve price the seller is entitled to pass the property in from the auction, alternatively, the seller may accept the highest bid on offer on the day. Often when a property is passed in from the auction the agent will conduct private negotiations after the auction with the person who placed the highest unsuccessful bid in an effort to achieve an acceptable price to both the seller and the potential buyer. Therefore if you are interested in a property it is important to be the highest bidder.
Private negotiations may also take place with further under bidders but the highest bidder will get priority.
The successful auction bidder is required to sign a binding contract immediately after the auction and to pay a deposit to the Sellers agent. The deposit is normally paid by bank draft or personal cheque.
It is advisable that prospective buyers arrange the necessary finance prior to attending an auction. Buying a property is obviously a very important decision for anyone and it is important to ensure that you are properly advised in all aspects of the process. The job of a professional property sales advisor is to give clients relevant information to allow them to make the right decision on all aspects of the property transaction. In this regard, Sabre Real Estate are best placed to offer you professional advice and in turn to make the buying process as stress-free as possible for you.
A highly successful agent and auctioneer, Dee Sheehan is also the proud Director and Licensee of SABRE Real Estate. Call her on 0407 799 496.