Buying a property at auction can be a nerve-wracking experience. It is especially so if you have not purchased an auction property in the past. An experienced conveyancer can help you buy an auction property. Below are a few ways how.
The primary reason why you should purchase an auction property is that it is cheaper than similar properties. Alternatively, you could be buying a highly prized property such as one with historical significance or a house owned by a public figure. Your conveyancer's first task is to appraise the property to ensure that it is reasonably priced. Besides, they will inform you of the auction price of similar properties in the area. It will give you a rough estimate of how high bidders might be willing to bid.
Besides the valuation, your conveyancer will also verify the property title and other essential documents such as the occupation certificate, swimming pool safety certificate, renovation permits and strata bylaws.
In most cases, the seller or their conveyancer will provide a pre-purchase inspection report. However, it would be wise to ask your conveyancer to organise a separate inspection to ascertain the condition of amenities, identify structural defects and any repairs that the property might need. The findings of the inspection report will either encourage or deter you from purchasing the property.
Auction properties do not have a cooling-off period. As such, you must buy the house if you were the highest bidder at the fall of the hammer. Your conveyancer will help you secure financing if you intend to purchase the property via bank finance. They will advise how to reduce the mortgage charges. For instance, you could offer a higher deposit to avoid mortgage insurance charges. Besides, the conveyancer will bargain interest rates with your bank.
Terms Of Sale And Bidding Strategies
Your conveyancer will explain the terms of auction and sale. For instance, you could be asked to register as a bidder by paying a bidding fee or submitting your identification documents. During the auction, you should be aware of vendor bids. These are bids made by the seller and their agent to ensure bidders get to the reserve price. If bidders do not get to the reserve price, the highest bidder will negotiate the selling price with the seller. As such, it would be wise to bid before the property gets to its reserve price. You should have a budget in mind as you bid. Do not let your emotions or competitive nature to force you to exceed your budget.
When buying an auction property, the conveyancer will appraise the property, conduct a property inspection, organise financing and help you develop a bidding strategy.
Contact a local conveyancing service to learn more.