AUCTIONS ARE A WINNER
- Written by Melanie Toye, June 21, 2013
For property owners, it can feel like a nail biiting move to auction a property. Offers may not make the reserve price and for some, offers may not even be made.
But in Victoria, auctions are proving to be the winner this month. Take a look at REIV's latest statistics from 10th - 16th June 2013.
787 property auctions were held last week, of which 753 had a result.
The statistics show 501 houses were auctioned, 271 flats/apartments and 13 vacant lands. Housing property seems to be most sought after with a median price of $740,000.
And the main considering factor of whether auctions are more common than private sales,wins the property choice of sales race. Over $404.81 million in auction sales were made, compared with only $209.31 million in private sales.
When considering buying your next property through auction, be sure to look at the differences to private sales versus auction sales. To ensure you are comfortable with the different selling tactics and requirements.
With auctions, there are no cooling off periods. This means you cannot cancel the contract if you made a hasty decision and change your mind. If you do, you could be in breach of the contract and possibly lose your deposit and you may even have to compensate the seller for other costs.
And when the hammer is down and the auctioner points to you and yells sold. Be ready to sign the contract and pay the deposit immediately. You also accept the Contract for Sale and the terms and conditions, whether or not you are aware or understand the possible impacts of those terms and conditions.
Prior to the auction, you can ask your lawyer to view the terms and Contract for Sale, obtain building, pest, strata reports, obtain approval for finance and inspect the property thoroughly. As images that are used to sell a property may look considerably different to the real property. One tactic some real estate agents use is taking photographs that make a room look larger than it really is, by using a wider lense etc.
Before bidding, be sure you have researched the property market in the area, attend other auctions to get a taste of the pace of an auction and the process. Speak with the real estate agent to see what you will need to bring if you do bid at the auction, such as identification etc.
Some auction experts recommend not bidding under the property hits the reserve price and is officially for sale. Also know when you can't afford to bid anymore. Do not tell anyone the amount you can bid up too, but do not bid when you don't have the money to either.
Whether you just purchased a new property or looking to purchase one, our experienced Mortgage Managers can help you. Call us today on 1300 799 266.
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