Buying With Us
Our dedicated team is committed to finding you the perfect property. As one of our buyers, you can expect plenty of personal attention, with our proactive agents working to meet all of your property needs. We’ll also provide you with honest, insightful market advice to help you in your search. Register with our Preview Club service and as a valued subscriber to this free service you’ll receive comprehensive email updates as soon as we list a property matching your criteria. You’ll hear about properties before they’re advertised to the wider market and you’ll be able to view them before they’re open to the public.
Buying at Auction
Before the auction
Do your Research
When you are looking in an area, whether buying 'for sale' or through an Auction, research the prices in that area for the type of property that you want. Find out about the good and bad features of the area, and comparative prices to other areas. Look at similar properties to the type that you are seeking.
Attend Local Auctions
It is valuable experience to attend as many local Auctions as you can to see how the Auction proceeds. Observe how people bid, and who is at the Auction. Work out people's style of bidding. The same people may be bidding against you for your property in the near future.
Arrange your Finances
Ensure that you have your Finance in place prior to the Auction. Establish you bidding limit. Make sure you allow for all extra costs, eg legal, stamp duty, finance fees etc.
The Legals
It is important to have your solicitor or conveyancer examine the sale contract before the auction to make sure that everything is in order. It is also important to have your finance arranged and that you have made all the necessary quality inspections. Take the time to find out what prices properties in the area have sold for, so you have a guide for the market value of the home you want. If you want someone else to bid on your behalf, they must give the agent a written authority from you, before the auction starts. The letter must include your name, address and details of proof of identity, such as your driver licence or passport number.
At the Auction
Register to bid
You cannot bid at an auction of residential and rural property in NSW unless you give the selling agent your name and address and show proof of your identity. Your details will be recorded by the agent in the Bidders Record and at the auction you will be given a bidders number. Registering for an auction does not mean you must bid. Registering simply gives you the right to bid.
Agents are required to give all potential bidders a copy of a Bidders guide fact sheet prior to the auction. The information contained in the fact sheet is listed below.
Who needs to register?
If you are bidding to buy the property jointly with another person, for example, a spouse or partner, only one of you needs to register. You need to register if you are bidding for another person or a company, and you need to show the agent a letter of authority from them, authorising you to bid on their behalf. This also applies if you are bidding on behalf of someone on the telephone.
If you are bidding for another person:
- the letter of authority must include the person’s name, address and the number on their proof of identity (eg, drivers licence or passport number).
If you are bidding for a company: - the letter of authority must be on the company letterhead and the ABN will be recorded in the Bidders Record as the companys proof of identity.
When to register
You can register with the selling agent at any time prior to the auction, such as when you inspect the property, or on the day itself.
If you pre-register, you will need to show the agent your proof of identity on auction day. The agent will then give you your bidders number.
What happens at registration?
The agent will write your name, address and the number of your proof of identity in the Bidders Record and, if you are bidding for someone else or a company, their name, address and proof of identity details. The agent will then give you your bidders number, which you must display when you bid.
What kind of proof of identity is needed to register?
A card or document issued by government or a financial institution, and that shows your name and address. Here are some examples:
- passport
- drivers licence or learners permit
- Seniors Card
- vehicle registration paper
- council rates notice
- centrelink card, etc.
What if you arrive late at the auction?
If you arrive after the auction has started and wish to bid, you will need to quickly find the agent and register or present your proof of identity, if you have pre-registered. It should only take a few moments for the agent to note your details and give you a bidder number. If you need to make a bid immediately, hold up your hand to let the auctioneer know you are going to make a bid after you have registered. As soon as you have a bidder number, the auctioneer can accept your bids.
Reserve price
Before auctioning a property, the seller will nominate a reserve price which is usually not told to the interested buyers. The reserve price is the lowest price that the seller is willing to accept. If the highest bid is below this price, the property will be passed in. The seller will then either try and negotiate a price with interested bidders or put the property back on the market. If the bidding continues beyond the reserve price, the property is sold at the fall of the hammer. If you are the successful buyer, you must then sign the sale contract and pay the deposit on the spot (usually 10%). Remember there is no cooling-off period if you buy at auction.
Establish your bidding Limit
It is important that you set your own bidding limit. Decide what the property is worth to you based on what you can afford. To make sure you can afford a property work out the limit on your loan and add 3% to the interest rate. If you could still make the payment then that is a very safe limit.
Set an Uneven Limit
Wherever possible, it pays to set an uneven limit, rather than stopping on a round number. For example, rather than stopping at $410,000, try going to $411,000. A small $500 bid could make the difference if the other bidder is close to their limit.
Successful bidder
If you are the successful bidder, you must then sign the sale contract and pay the deposit on the spot. This is usually 10% of the purchase price. Remember, there is no cooling-off period when you buy at auction. If the property is passed in at auction but you end up exchanging contracts on that same day, the cooling-off period does not apply. After the exchange of contracts, your solicitor or conveyancer will carry out various searches on the property prior to settlement. Your solicitor and the sellers legal representative will then arrange for settlement. You must pay the balance of the purchase price upon settlement.