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BUYING AT AUCTION Auction is the most transparent way to purchase property, some of the benefits when you choose to buy at Auction include: You may encounter less competition for the property If a buyer is in a position to purchase at Auction, they may actually find they have less competition than if they seek to purchase priced property. This is because some buyers are not in a position to buy under the cash-unconditional terms of an Auction. If a property is "passed in" at Auction (does not sell), often several buyers come forward afterwards seeking to buy with a range of special conditions attached to their offer eg. finance approval, building and pest inspections etc. This then places buyers in competition with each other post-Auction. Some buyers have secured excellent value at Auction simply because a cash-unconditional contract was a high priority for the seller who chose to take the highest offer under Auction conditions rather than considering conditional offers afterwards.
Competition at an Auction is transparent Property transactions are a process of negotiation and buying at Auction is no different. If you wish to alter the terms of settlement, deposit, inclusions or conditions of the contract of sale, just speak to the Listing Agent. However, ensure you do not wait until Auction Day as this may be too late, these conditions must be agreed upon by the vendor prior to you commencing bidding. Although you are at liberty to request variations you may not always get your way, especially if there is strong interest in the property. If your conditions are not agreed upon prior to Auction do not be deterred. If the property is not sold at auction the vendor is often more receptive to conditional offers subsequent to the day. Just as there are benefits to a seller who chooses to market their property by auction, astute buyers may also benefit by the process. With an Auction, offers and negotiations are public - out in the open. With a private treaty sale (sale by price), if two or more buyers want the same property at the same time, it is standard practice that each buyer will not be aware of the offer being made by other buyers, meaning all competing buyers are "shooting in the dark". At Auction all offers are made publicly (in the form of bids) and a buyer can choose to increase their offer only as much as they want to pay above the last highest offer. This buyer is free to withdraw from the bidding any time they feel the price has gone beyond the figure they are prepared to pay.
Things to consider The terms of a residential Auction sale usually requires the buyer to bid on an unconditional basis. The real estate agent can give you a copy of the terms and conditions before the auction date.
Remember, when buying at Auction there is no cooling- off period. You need to view the property and do all the necessary checks before bidding. Getting an independent professional valuation is also a good idea. If you are the successful bidder at the Auction, you will have to settle the contract even if the house is defective or you can't afford it. The terms of a residential auction sale usually require the buyer to bid on an unconditional basis. This means you cannot have any special conditions such as a finance clause or subject to the completion of another sale.
Before the Auction, make sure you:
Inspect the property Do all the necessary checks such as a building and pest inspection Arrange your finance, keeping in mind the repayments you can afford now and if interest rates go up Do your own research of the market Set a budget and stick to it Ask the agent how much is needed for the deposit and how you need to pay it on the day Get a copy of the contract and think about getting legal advice about the terms and conditions of the Auction to ensure you understand what you will be bound buy if you are the successful bidder.
CONTINUED... On Auction day On the day get a copy of the terms and conditions of the Auction before the Auction begins, these should be read out to prospective bidders before the Auction starts. Check with the Auctioneer, make sure there are no changes to any contract you may have already been given. You can also ask questions about the property before the bidding starts. If you want to bid, register with the Auctioneer before the Auction starts. The Auctioneer will give you a unique identifier such as a numbered paddle. Only registered bidders can bid on the day. Set a budget before the Auction and stick to it. If you are the successful bidder, you must sign a contract immediately. There are serious legal ramifications if you cannot settle whether you had a loan approved or access to the money, or you may be asked to pay for the cost of re auctioning the property and any shortfall between your offer and the offer received at the next Auction. If you are the highest bidder and property doesn't reach the reserve price, you have first right to negotiate after Auction. If you agree to accept a contract after Auction, you do have the five-day cooling- off period protection.
Vendor Bids In Queensland, Auctioneers are allowed to accept 'vendor' (seller) bids up to the reserve price. The property is then 'on the market'. Vendor bids must be announced in the conditions of sale at the beginning of the Auction. It is illegal for Auctioneers to make "dummy bidding" or take false bids once the property is on the market and any bid where there is no genuine bidder is a false bid. The Auctioneer reserves the right to bid on behalf of, or accept, bids from the owners of the property.
Good luck!
CONDITIONS OF SALE BY PUBLIC AUCTION FOR REAL PROPERTY OF QUEENSLAND 1. Any person intending to bid must register before making a bid, and upon making a bid the bidder must clearly display the bidder number assigned to them by the auctioneer as bids will only be accepted from registered bidders 2. The highest approved bidder shall be the Buyer subject to the Seller's approval and the reserve price, if any. 3. The Auctioneer may at his discretion refuse to accept any bid from any person, and no bid if accepted may be retracted without the consent of the Auctioneer. No bidder shall advance a less sum or percentage at any bidding than the Auctioneer is willing to accept. 4. A bid shall be deemed to be accepted unless the Auctioneer forthwith after it has been made declares his non-acceptance or dissent. 5. If any dispute or difference shall arise as to the highest bidder the Auctioneer may reopen the bidding and resubmit the property commencing with the highest amount previously bid for the same or he may decide on the highest bidder in such other manner as he in his absolute discretion shall deem fit and his decision shall be final. 6. Immediately upon the fall of the hammer the bidder of the highest bid accepted shall sign these conditions of sale and purchase and forthwith pay the deposit required and shall thereupon be deemed to be the Buyer, otherwise the property may be resubmitted at his or her risk and expense or submitted afresh to Public Auction as if the property had never before been submitted 7. The right to bid by or on behalf of the Seller is expressly reserved. 8. The Seller and the Buyer agree to do all necessary acts and to sign all documents and papers for the purpose of transferring the property to the Buyer. They also appoint the Auctioneer as their Agent and grant him an irrevocable authority to sign all documents and papers necessary to form the agreement for sale and purchase of the property. 9. A bidder shall be deemed to be acting on their own behalf unless, prior to bidding he/she has given the Auctioneer a copy of a written authority to bid for, or on behalf of, another person. 10. The conditions then to apply are as contained in the Real Estate Institute’s copyright form of Contract and Terms of Contract for Houses and Land Eleventh Edition, Units and Townhouses Seventh edition, and/or any other contract of sale that has been on display prior to auction. Clause 3, the finance clause, does not apply and Clause 4, the Building or Buyers Inspection Clause does not apply. All bidders at this Auction and, more particularly, the successful bidder shall be deemed to have been given, and to have read and acknowledged the 'Contract Warning' and the 'Disclosure Statement' under the Body Corporate and Community Management act 1997 which are annexed to the contract of sale by virtue of the fact that they have been on display prior to this Auction N.B: IN ACCORDANCE WITH THE TERMS OF AUCTION NO COOLING OFF PERIOD WILL APPLY. The auctioneer may, at his/her discretion during the in-room auctions, elect to pause an auction and continue in the order. All auctions will be re-opened to the public and either sold or passed in, prior to the closing of the auctions.
Now Selling WITH BEACHSIDE SPECIALISTS THE JOHN PARKES TEAM 0401 589 107
4
bed
2
bath
john.parkes@raywhite.com
2
car
850 m2
696 PACIFIC PARADE, CURRUMBIN A landmark address coming to market for the first time in over 40 years, this truly is a once in a generation opportunity. A never to be built out absolute oceanfront allotment superbly located in the most tightly held enclave along the world class Currumbin coastline. Settlement: 19th January 2024 Deposit: $500,000
11AM (QLD TIME)
Notes
Now Selling WITH BEACHSIDE SPECIALISTS THE JOHN PARKES TEAM 0401 589 107
5
bed
3
bath
john.parkes@raywhite.com
2
car
14B DARWALLA AVENUE, CURRUMBIN Flawless craftsmanship, opulent finishes, and timeless coastal design meet absolute beachfront paradise. Offering a lifestyle most can only dream of, this brandnew luxury residence is undoubtedly one of the Gold Coast's most prestigious homes. Settlement: 18th December 2023 Deposit: $500,000
1PM (QLD TIME)
Notes
MEET GAVIN CROFT RAY WHITE QUEENSLAND CHIEF Ray White Queensland Chief Auctioneer Gavin Croft is one of the most experienced operators in the industry. Throughout his career, he has overseen more than 15,000 property transactions but he has a keen strategic interest in bettering the consumer experience. His devotion to his craft has seen Gavin win both awards and admiration of his peers across all levels, including winning REINSW auctioneer of the year twice as well as the REIQ auctioneer of the year.
MEET CONNOR SUMMERS CLIENT ADVISOR AT LOAN MARKET GC Buy your new home sooner. Getting on the property ladder doesn't have to be daunting. at the same time we can provide you with important information on the suburbs and properties your interested in, our Loan Market Broker Connor can help you secure the right finance for your dream home. 0416 838 673
MEET SHANE SEGHERS INVESTOR SPECIALIST Maximise your investment returns! Sgane looks after our new business for investors, ensuring our clients enjoy a smooth and seamless transition. His drive for success helps to ensure that each of our new landlords receive the experience and commitment they deserve. 0420 301 605 shane.seghers@raywhite.com
connor.summers@loanmarket.com.au
The John Parkes
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JOHN PARKES PRINCIPAL & BEACHSIDE SPECIALIST
My objective for each of my clients is clear, to achieve the best possible result in any market. The frontman & main point of contact for current, up & coming sellers & purchasers, I'm the lead negotiator & my focus is on achieving premium results. Over the past 5 years we've invested heavily into my team to ensure my clients get the very best service. I want people to engage with me, because of me AND my team. These days to sell a home correctly you need a team of specialists, because the difference between selling & celebrating is all in the details.
ERIN DAWE EXECUTIVE ASSISTANT TO JOHN PARKES
An absolute powerhouse with an outstanding eye for detail, for the past 5 years Erin has been the foundation of my team. With extensive industry & contractual experience she manages the administrative element of the entire real estate transaction, ensuring that every aspect of the marketing & selling campaign is executed with the utmost precision.
JOSH MCKENZIE BUYERS AGENT TO JOHN PARKES
Personable, reliable & always approachable, Josh has developed into an excellent Agent over the last 4 years & an invaluable asset as a Buyer Manager within my team. Josh understands how important the client experience is, especially when it comes to purchasing property. His knowledge of the Tugun market is second to none.
GEORGIA LAZZARO SALES ASSOCIATE TO JOHN PARKES
With two eyes on the market, marketing, & making sure that all elements of your sale are set to success, Georgia makes multitasking look effortless. With an investment property background Georgia's unique perspective allows her to play a hybrid role & she is absolutely crucial in making sure that we don't just meet expectations, but we exceed them.
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