Off the back of soaring interest rate rises, media coverage of the Sydney property market has probably made anyone looking to buy a property a little nervous.
Not only that, the recent shortage of supply in the market has also led to an increase in the use of auctions to sell properties, which can be daunting for purchasers. At an auction, once the auctioneer says “SOLD”, if you are the highest bidder you are legally bound to go through with the purchase so you really need to have everything in order and be ready to go on the day.
Here are a few helpful tips that you should know about the process;
Step 1 – Review the Contract
If you find a property that you are interested in purchasing, you should request a copy of the Contract for Sale from the real estate Agent. The experienced property team at Meehans can then review the contract for you, and if required, seek clarification or amendments prior to the Auction to ensure that there are no ‘nasty surprises’ in the contract and you don’t get caught out.
Step 2 – Arrange your Finance and Access to a Deposit
Before the auction, you should contact your bank or broker to arrange formal loan approval and determine your bidding limit for the auction. It is important to have this clarified before you place a bid!
You should also make arrangements to have the required deposit amount ready, as this must be paid once the auction is finished.
Step 3 – Pre-Purchase Inspection Reports
It is important to obtain any inspection reports (i.e. Pest Report, Building Report or Strata Inspection Reports) before attending the auction so that you are aware of any issues that might affect the value of the property. This is particularly important when you are purchasing at an auction because there is no “cooling off” period once the property sells and the contract requires that you must accept the property condition subject to all faults and defects. Meehans can assist you in obtaining all of the necessary searches and reports in advance so that you can feel confident in bidding for the property.
Step 4 – Signing the Contract
If you are the successful bidder at the auction, you will be required to sign the Contract on the spot and pay your deposit.
Once the Contract is signed and dated, it will be sent to the team at Meehans so that we can liaise with the other party and organise settlement, which is usually six weeks from the date of the Contract, unless you have negotiated a longer period.
If you would like more information on purchasing a property at an auction, or if you have found a property that you would like to buy, contact our experienced property and conveyancing team on ph 02 4627 3333. We can guide you through the purchase and ensure everything runs as smoothly as possible.
This article was published on 25/11/24 and the information is valid as at the date of publishing. This article is general in nature and is not and should not be considered or relied on as legal advice. Meehans Solicitors is not responsible in the event this information is relied upon by the reader in the absence of specific legal advice.
