Attending an auction while pursuing property search is a good idea but it does not come without a fair share of pitfalls and at Compare Conveyancing Sydney we strongly advise our clients to gain professional advice before they attend the auction and possibly make a buying decision. One of the little know and yet the most critical aspect of the entire auction process is that there is zero cooling off period and this would mean that the corresponding contract will become binding the moment you sign it.
The first pertinent question for all our clients planning to secure their dream property via an auction is whether they would have enough liquid capital to pay for the deposit that is usually set at 10% of the property value.
Experienced professionals at Compare Conveyancing Sydney can help negotiate this amount by dealing with the vendor conveyancer or solicitor on your behalf to ensure that you do not burn a hole in your pocket. We also guide our clients to be assured of all pros and cons and legal aspects of buying the given property before they sign the contract because there is no looking back after that, you would need to
Secure an unconditional finance approval from the concerned banks and financial institutions to ensure that you can actually afford the property
Understand the contract of sale and negotiate the terms and conditions (as applicable)
Make queries with the neighbors, council, builder, other real estate agents about all properties being auctioned to ensure that the property you are bidding for is in prime condition and is free of any unforeseen hassles.
Make a rationale decision before raising your bid as to whether you would like to continue looking for other properties or have zeroes in on the one you need.
Secure the required photographs of the property to make a later make a claim any damages before you sign the contract.
Sound legal advice from Compare Conveyancing Sydney would help you in covering avoidable risks, understanding the terms and conditions of the given contract and performing a thorough review of the contract of sale.
You also need to meet a licensed valuator to know the current market value of the property before you make a bid commitment. Compare Conveyancing Sydney can help you find the right for the job and ensure that you are not at the losing end of the deal. You also need to choose a conveyance should you be as the highest bidder at the auction.
Attending an auction in the NSW (New South Wales) - You need to pay attention to the following requirements -
You need to submit your proof of identity and other relevant details to the auctioneer before you can take part in the bidding process. These details would secure you a bidder's number and would be stored in the Bidders records for any reference at a later point in time.
If you are bidding on behalf of an individual than you need to submit the letter of authority as well as the identification credentials of the person in question beforehand.
If you are bidding on behalf of a company, then you need an authorizing letter (company letterhead) as well as ABN (Australian Business Number) before you can proceed to the bidding process.
Cleary bidding at an auction is a stringent and risky process that can give you big gains as well. With Compare Conveyancing Sydney on your side, you would be well aware of conveyancing processes and can make this choice with confidence.