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
C O N T I N U E D . . .
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
Good luck!
2 2 1 bed bath car
1/131 Golden Four Drive, Bilinga
BEACHSIDE BLISS – GROUND FLOOR IN BOUTIQUE BLOCK OF 5
Tucked away in a peaceful pocket just steps from the sand, this ground floor unit is a rare coastal find. Featuring two bedrooms, two bathrooms and an open plan kitchen, living and dining area, this home invites effortless indoor-outdoor flow courtyard - the perfect spot to soak in the salty breeze and coastal calm.
One of just five in a boutique complex and the only one located on the ground floor, this property offers privacy, tranquillity, and a lifestyle many only dream of
DEPOSIT: $40,000 SETTLEMENT: 60 DAYS FROM CONTRACT DATE
Shane Seghers
0420 301 605
shane seghers@raywhite com
GST ANNOUNCEMENT AND CLARIFICATION
At the auction, the Auctioneer will announce in clear terms:
1 If GST is to apply or not; and
2 One of the following applicable GST Clauses
IF THE SELLER IS NOT REGISTERED FOR GST:
• The property is offered for sale on a GST inclusive basis – which means the knockdown price is the sale price
IF THE SELLER IS REGISTERED FOR GST:
• The property is offered for sale on a GST exclusive basis – which means the knockdown price attracts GST at
• The property is offered for sale under the Margin Scheme – which means that the knockdown bid is the sale
CONDITIONS OF SALE - PUBLIC AUCTION
1 All Bidders must be registered The Auctioneer may register a person as a Bidder only if the person has provided his/her name and address and satisfactory evidence of his/her identity If the Bidder is successful, the name listed on the registration form will be the name of the Buyer in the Contract of Sale, unless the Bidder is bidding on behalf of another person in accordance with Conditions 9 and 10
2 The highest approved Bidder will be the Buyer subject to: a the reserve price, if any; and b the Seller’s approval
3 A cooling-off period will not apply to any Contract of Sale formed on a sale by auction or entered into, by no later than 5 00pm on the second clear business day after the property was passed in at auction, with a registered bidder for the auction
4 The Buyer acknowledges that the Contract of Sale will not be conditional on any of the following: a Finance; and b Building and Pest Inspection Reports
5 Bids will only be accepted from registered Bidders
6 Bidders must use the numbered identifier provided by the Auctioneer to make a bid during the auction
7 The Seller reserves the right to bid, either personally or by a representative If the Seller or their representative bids for the property the Auctioneer must clearly announce to all other Bidders that the bid is made on behalf of the Seller
8 The Bidder warrants its ability to enter and complete the Contract of Sale in accordance with its terms 10% of the selling price; or price and GST payable by the seller is 1/11 of the margin
9 Any person bidding on behalf of another person must provide the Auctioneer with a copy of their written authority before the auction; otherwise, the Bidder will be taken to be acting on their own behalf The Auctioneer may register a person as a Bidder only if the person gives the Auctioneer the name and address of the other person for whom bids are intended to be made on instructions given by the other person by telephone.
10 If the Bidder is authorised to bid on behalf of another person and is the Buyer in accordance with condition 2, the Bidder warrants the other person’s ability to enter and complete the Contract of Sale in accordance with its terms
11 The Auctioneer has the discretion to refuse to accept a bid from any Bidder A bid will be taken to be accepted and irrevocable unless the Auctioneer refuses it If the Auctioneer refuses a bid, the Auctioneer must announce to all other Bidders that the bid has been refused
12 Without affecting condition 11, if there is any dispute over a bid or the result, the Auctioneer may: a re-open the bidding; and/or b determine the dispute in any other way the Auctioneer considers appropriate in his/her absolute
discretion
13 Immediately on the fall of the hammer the property is sold, the Bidder of the highest bid accepted in accordance with Condition 2, must sign, as Buyer, the Contract of Sale in the form displayed or circulated with these Conditions of Sale and pay the deposit to the nominated Deposit Holder
14 The deposit payable under the Contract of Sale is 10% of the successful bid or any other percentage or figure nominated in the Contract of Sale
15 The Seller and the Buyer agree to sign all documents and do everything else necessary to transfer the property to the Buyer The Seller and the Buyer each appoint the Auctioneer their agent to sign the Contract of Sale on their behalf This appointment is non-revocable
16 If the Buyer does not pay the deposit, at the Seller’s option: a the result of the auction will be treated as invalid and the property may be resubmitted to public
auction at the risk and expense of that Buyer; or
b the Seller may affirm the Contract of Sale and pursue their legal and other remedies against the
Buyer as they see fit
17 The decision of the Auctioneer is final in all matters relating to the auction
18 The Bidder consents to the use of electronic communication in accordance with the provisions set out in Chapter 2 of the Electronic Transactions (Queensland) Act 2001 (Qld) and Electronic Transactions Act 1999 (Cth)
19.If this document is signed using an electronic signature, the Bidder agrees to be bound by these conditions in electronic form and consent to signing this agreement using an electronic signature
B Y P U B L I C A U C T I O N F O R
1 The vendor’s reserve price must be given in writing to the auctioneer before the auction commences
2 A bid for the vendor cannot be made unless the auctioneer has, before the commencement of the auction, announced clearly and precisely that a bid may be made on behalf of the vendor by the auctioneer
3. The highest bidder is the purchaser, subject to any reserve price.
4 In the event of a disputed bid, the auctioneer is the sole arbiter and the auctioneer’s decision is final
5. The auctioneer may refuse to accept any bid that, in the auctioneer’s opinion, is not in the best interests of the vendor
6 A bidder is taken to be a principal unless, before bidding, the bidder has given to the auctioneer a copy of a written authority to bid for or on behalf of another person
7 A bid cannot be made or accepted after the fall of the hammer
8 As soon as practicable after the fall of the hammer the purchaser is to sign the agreement (if any) for sale
9 All bidders must be registered in the Bidders Record and display an identifying number when making a bid
10 One bid only may be made on behalf of the vendor by the auctioneer on behalf of the vendor.
11 When making a bid on behalf of the vendor, the auctioneer must clearly state that the bid was made on behalf of the vendor
12. Bidding by a co-owner or executor must be identified in the auction conditions.
MEET GAVIN CROFT
RAY WHITE QUEENSLAND CHIEF
Joining the Ray White QLD team in 2021 in his role as Chief Auctioneer, Gavin principally works in the Auction Arena for Ray Whites network of offices throughout the state The award winning Auctioneer & trainer is known for consistently achieving a clearance rate well above the industry average
MEET CONNOR SUMMERS
CLIENT ADVISOR AT LOAN MARKET GC
Buy your new home sooner Getting on the property ladder doesn't have to be daunting at the same time we can provide you with important information on the suburbs and properties your interested in, our Loan Market Broker Connor can help you secure the right finance for your dream home 0416 838 673 connor summers@loanmarket com au
MEET
SHANE SEGHERS
INVESTOR SPECIALIST
Maximise your investment returns! Sgane looks after our new business for investors, ensuring our clients enjoy a smooth and seamless transition His drive for success helps to ensure that each of our new landlords receive the experience and commitment they deserve 0420 301 605 shane seghers@raywhite com
