Auctions – Keeping Cool Under Pressure!

Auctions are a common method of sale of real estate that is most effective in city areas or in a booming market. There are a different set of rules for an auction compared to a private sale and things to be aware of to succeed on when a property goes under the hammer!

The Top 7 Things You Must Know about Auctions

1. You don’t necessarily need a 10% deposit payable on Auction Day
2. Real Estate Agents must not advertise for 10% less than the reserve price
3. Real Estate Agents have the right to use Vendors bids to help reach the reserved price
4. Unlike a private sale there is not a three day cooling off period
5. Once the hammer has knocked down the property it is sold and late bidders will not be recognised
6. At an Auction the type of property will determine the type of buyers who bid
7. If a property is passed in the winning bidder will have the advantage of being able to have the exclusive first right to negotiate

Should you Purchase at an Auction?

You may not have a choice! If the property that you would like to buy is being sold by this method it leaves you with little choice. All you can do is look at potentially putting in an early offer or on auction day sticking to your budget and not getting caught up in the hype and emotion that is created as the house of your dreams is almost in reach.