Buying real estate at auction is common in Australia and has proved to be an excellent way to reach fair deals at reasonable prices.
However, it is important to remember some key aspects of this particular acquisition method, prior to placing a bid.
First, in order to take part it is necessary to register yourself - or whoever is bidding on your behalf - before the auction.
Like more traditional modes of purchase, buying at auction requires extensive research. A market analysis of surrounding areas, pest and building inspections as well as projected value should be obtained before auction day.
It is also important to negotiate terms of sale and have your solicitor look over the agreement to ensure that when the hammer falls, you get what you pay for.
Auction sales in Australia require the winning bidder to immediately pay five to ten per cent of the purchase price, depending on which state you are in.
Buying at auction is not for everyone as making financial commitments under time constraints does not appeal to all buyers.
But, there stands the possibility of getting a great price on your dream home.
