Will I lose control?
Buyers and sellers should approach auctions with absolute confidence because there is no shortage of professionals to answer their questions, from the marketing agents to the auctioneers.
Australia’s state borders are more than lines on a map when it comes to legislation pertaining to the auction process, and the rules are in place to ensure auctions are totally fair and transparent to all.
Part of preparing yourself, you should find out what you can and can’t do depending on your state or territory.
Here are three common questions from buyers:
Will I pay too much?
The great advantage of buying at the auction is that the negotiation process is conducted in full view of all parties and buyers can see what other people are willing to pay.
If people are bidding against you, it means that they are prepared to pay more to have that property. It is your choice, and only yours, to continue bidding or to stop when your limit. If you really believe you will get ‘carried away’ with emotion, have someone else bidding on your behalf.
How do I know if the property is within my price range?
It is illegal to use a price in Queensland while advertising an auction property without a price guide in Victoria may mean huge penalties for the agent.
Confused?
Buyers need to do two things – get the necessary financial advice to determine what their price range and do their own research to see what similar properties have sold for in the area. Information on current market action is readily available. Remember, however, that predicting the auction sale price outcome can never be 100 per cent certain.
How will the auctioneer use vendor bids?
Australia-wide, vendor bids must be announced to buyers.
At some stage the auctioneer may need to speak on behalf of the seller and make a ‘vendor’s bid’. This is both legal and indicated by the auctioneer for all to hear.
In Queensland, auctioneers can accept vendor bids only up to the reserve price. In New South Wales and the ACT, only one vendor bid can be made per property auction. South Australian vendors can have up to three bids, while West Australian property owners can make up to 10 vendor bids via their auctioneer. There are no restrictions on the number of vendor bids in Victoria, Tasmania or the Northern Territory.
You can see why it is important to get the right information from your local agent if you want to understand the auction process.
LYN COX
Public Relations
- 0061 418 793 096
- lcox@remax.com.au