Auction is the most transparent way to purchase property, some of the benefits when you choose to buy at Auction include:
You may encounter less competition for the property
If a buyer is in a position to purchase at Auction, they may actually find they have less competition than if they seek to purchase priced property This is because some buyers are not in a position to buy under the cash-unconditional terms of an Auction
If a property is "passed in" at Auction (does not sell), often several buyers come forward afterwards seeking to buy with a range of special conditions attached to their offer eg finance approval, building and pest inspections etc This then places buyers in competition with each other post-Auction Some buyers have secured excellent value at Auction simply because a cash-unconditional contract was a high priority for the seller who chose to take the highest offer under Auction conditions rather than considering conditional offers afterwards
Competition at an Auction is transparent
Property transactions are a process of negotiation and buying at Auction is no different. If you wish to alter the terms of settlement, deposit, inclusions or conditions of the contract of sale, just speak to the Listing Agent However, ensure you do not wait until Auction Day as this may be too late, these conditions must be agreed upon by the vendor prior to you commencing bidding Although you are at liberty to request variations you may not always get your way, especially if there is strong interest in the property. If your conditions are not agreed upon prior to Auction do not be deterred If the property is not sold at auction the vendor is often more receptive to conditional offers subsequent to the day Just as there are benefits to a seller who chooses to market their property by auction, astute buyers may also benefit by the process With an Auction, offers and negotiations are public - out in the open With a private treaty sale (sale by price), if two or more buyers want the same property at the same time, it is standard practice that each buyer will not be aware of the offer being made by other buyers, meaning all competing buyers are "shooting in the dark" At Auction all offers are made publicly (in the form of bids) and a buyer can choose to increase their offer only as much as they want to pay above the last highest offer This buyer is free to withdraw from the bidding any time they feel the price has gone beyond the figure they are prepared to pay.
Things to consider
The real estate agent can give you a copy of the terms and conditions before the auction date Remember, when buying at Auction there is no cooling- off period You need to view the property and do all the necessary checks before bidding Getting an independent professional valuation is also a good idea If you are the successful bidder at the Auction, you will have to settle the contract even if the house is defective or you can't afford it
The terms of a residential auction sale usually require the buyer to bid on an unconditional basis This means you cannot have any special conditions such as a finance clause or subject to the completion of another sale
Before the Auction, make sure you:
Inspect the property
Do all the necessary checks such as a building and pest inspection
Arrange your finance, keeping in mind the repayments you can afford now and if interest rates go up
Do your own research of the market
Set a budget and stick to it
Ask the agent how much is needed for the deposit and how you need to pay it on the day
Get a copy of the contract and think about getting legal advice about the terms and conditions of the Auction to ensure you understand what you will be bound buy if you are the successful bidder
On Auction day
On the day get a copy of the terms and conditions of the Auction before the Auction begins, these should be read out to prospective bidders before the Auction starts.
Check with the Auctioneer, make sure there are no changes to any contract you may have already been given You can also ask questions about the property before the bidding starts If you want to bid, register with the Auctioneer before the Auction starts The Auctioneer will give you a unique identifier such as a numbered paddle Only registered bidders can bid on the day.
Set a budget before the Auction and stick to it If you are the successful bidder, you must sign a contract immediately There are serious legal ramifications if you cannot settle whether you had a loan approved or access to the money, or you may be asked to pay for the cost of re auctioning the property and any shortfall between your offer and the offer received at the next Auction
If you are the highest bidder and property doesn't reach the reserve price, you have first right to negotiate after Auction If you agree to accept a contract after Auction, you do have the five-day cooling- off period protection
Vendor Bids
In Queensland, Auctioneers are allowed to accept 'vendor' (seller) bids up to the reserve price. The property is then 'on the market'. Vendor bids must be announced in the conditions of sale at the beginning of the Auction
It is illegal for Auctioneers to make "dummy bidding" or take false bids once the property is on the market and any bid where there is no genuine bidder is a false bid The Auctioneer reserves the right to bid on behalf of, or accept, bids from the owners of the property
7/26 O’Connor Street, Tugun
TOP-FLOOR BEACHSIDE GEM - STEPS FROM TUGUN SURF CLUB
Nestled right on the pristine Currumbin Creek, this beautifully maintained townhouse in a complex of just 9, offers a rare opportunity to secure a slice of waterfront paradise Perfectly positioned in the tightly held Yerlonga complex of just eight residences, this original two-bedroom unit captures the essence of Tugun's relaxed coastal lifestyle. Set directly across from the Tugun Surf Life Saving Club and golden sands of Tugun Beach, this is a rare opportunity to secure a prime position in one of the Southern Gold Coast's most desirable beachfront pockets
DEPOSIT: $50,000 SETTLEMENT: 8TH DECEMBER 2025
