What You Need to Know About Auctions

This post answers the following questions

1) What you need to know about auctions?
2) How to become a successful bidder?
3) Who runs the auction house rules?
4) Why does privacy is important?
5) What are the dummy bids?

Auctions can be an exciting and not to mention a daunting and nerve-wracking experience. But once you have finally decided on the perfect home – after looking through more than a fair few house and land packages (more than you would care to count), the last final hurdle of an auction can also be like the light at the end of the tunnel. Read on to find out the ins and outs for auctions to make your auction experience as stress-free as possible.

house and land packages

Photo Credits: http://www.flickr.com/photos/tulanesally/6273534567/

Registering – In order to bid you must first register at the auction or by pre-registering.  This involves giving the selling agent details including your name, address as well as some form of proof identity (drivers licence, vehicle registration paper or council rates notice). You will then be issued with a bidder’s number for auction. If you and your spouse or partner are intending to buy the property jointly, then only one of you will need to bid.

Auction house rules – The auction is run by conditions prescribed by law. Some of the auction conditions include that the auctioneer is entitled to make one bid on behalf of the seller (and this must be explicitly announced as a vendor bid) and also that the auctioneer has no authority to accept a late bid after the fall of the hammer.

Photo Credits:http://www.flickr.com/photos/uair01/5312287807/

Successful bids – In the event that you are the successful bidder, you will be required to sign the sale contract immediately as well as pay the deposit sum. It is important to note that there are no cooling off periods at auctions. Once there has been exchange of contracts, your solicitor or conveyancer will carry out the requisite searches on the property. Your solicitor and the vendor’s solicitors will then organise a date and time for settlement. At settlement you will pay the remainder balance of the purchase price and get the keys to your new home.

Privacy – Your personal information including information relating to bids remains private and confidential.  The auction agent is not allowed to show the Bidders Record to any other person or organisation, including the owner of the house and land packages.

Dummy bids – The penalties are severe if you are charged with manipulating the auction in any way. If you are found to be making dummy bids at an auction you may be prosecuted and fined, and this goes for any other parties involved in the arrangement, including the auctioneer and agent.

 Jules Amberton currently specializes in house and land packages and is a budding freelance writer.

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