If you've been shopping around for a new home recently, you know that this can be quite a challenging task. You need to do a lot of research to find a property that meets your requirements, have to set up a time that is convenient for both parties and may then find that somebody else has beaten you to it. It's hardly surprising that some people burn out when they try and take this approach and if you feel their pain, maybe you should try the auction route instead. This may seem to be daunting to you at first glance, but it doesn't have to be. How can you be successful here?
An increasing number of properties across your state are being put up for sale in an auction environment. Do some research to look at these prospects online, and if you find something that is of interest, get in touch with the real estate agent initially to register your intent.
Know the Property
If the auction is coming up fairly soon, you need to get to work right away. Make sure you're happy with the area and any local facilities and if so, make sure that you get the vendor's disclosure statement from the real estate agent when it's available. Usually, this will be three days before the auction and it will give you valuable information about the property itself. You may find it advantageous to commission a building and pest inspection before the big day.
What to Do in Advance
It is important to understand the purchasing process here, as it is rather different. If you make a successful bid at auction you must have all of your details together before it can be consummated. You need to understand the contract and be ready to sign and remember, there is no cooling off period at all in this scenario.
Consequently, you have to make sure that your finances are in order before you bid, so if you need to take out a loan to finance the purchase you need to get preapproval as early as possible. You'll also need to have a deposit – which is typically 10% – to put down on the day if you're successful.
Understanding the Process
If you've never been to an auction before it can be a confusing environment. If possible, attend a separate auction beforehand so you can get used to the process and the various terms used. Just remember that the seller will set a reserve price for their property and if this is not met, you may still be able to agree on terms with the agent as the top bidder.
Over to the Conveyancer
If you achieve your objective and secure the home of your dreams, the next step is to tackle all the paperwork. This is where your conveyancer will come into the picture, to take you through to settlement.
For more information about purchasing a home, reach out to conveyancing solicitors.Share