Di JONES GUIDE TO BUYING AT AUCTION
Buying at auction can be an overwhelming process, to help out we've put this guide together to answer any auction questions that you may have.
In order to successfully purchase at auction, you must make a bid. If your bid is the highest bid accepted by the auctioneer and is above the vendor's reserve price, you will purchase the property.
If your bid has not reached the vendor's reserve, the vendor's agent may ask you to increase your offer. If the buyer and seller cannot agree on an acceptable figure, the property will be passed in.
If the property is passed in without a bid or on a vendor bid, then the vendor is at liberty to discuss the purchase of the property with any genuine buyers post auction. Disruptions, including questions asked of the auctioneer may be considered as an attempt to influence other bidders to your advantage. There are severe penalties for collusive practises in NSW and such tactics are taken very seriously.
Information on the prescribed conditions of sale by auction and warning notices will be on display at the auction. It is important to familiarise yourself with these conditions, please let a Di Jones employee at the auction know if you would like to view a copy.
Do i have to register prior to bidding at an auction?
Yes, in NSW you must register to bid for residential and rural property auctions.
What proof of identity do i need to register?
A driver's license is best. if you do not hold one, you need a card or government document that shows your name and address. For example a passport or Medicare card and a utility biil or statutory declaration stating your address.
Can I bid on behalf of someone else?
Yes. If you are bidding for another person, you must provide an authority to act on their behalf even if they are present at the auction. You will also need proof of identity.
What is a reserve price?
It is a price at which the vendor will sell.
What does "passed in" mean?
That the bidding has not reached the vendor's reserve price and the property is not sold.
If the property is "passed in", who gets first opportunity to buy the property?
The highest bidder. This is not a right but a courtesy.
If the property is "passed in" on a vendor bid, what happens then?
The vendor via the vendor's agent is at liberty to negociate with any genuine buyer.
Do i need ot pay a 10% deposit if i buy today?
Yes, directly after the auction. The contract calls for 10% unless the vendor agrees to a lesser amount.
Must i sign the contract on the day of the auction if i buy?
Is there a cooling off period for sales at auction?
No. The law does not allow you to cool off if you buy under auction conditions.
Can we amend the contract?
Yes, however any amendments must be requested prior to the auction and approved by the vendor's solicitor. They will then advise us in writing.