A Buyers Guide.....

Q
WHAT IS A REAL ESTATE AUCTION?
A
Auction is a form of marketing a property through intensive advertising media designed to capture the maximum attention of buyers within a set time frame. The process is a means of purchasing Real Estate through public negotiations to determine the true market value of the property.
 
 
Q
SHOULD I INFORM MY SOLICITOR?
A
It is recommended that you have your solicitor check the Particulars and Conditions of Sale which will include terms and conditions prior to Auction. Bayleys provide information packs which include a Certificate of Title (this will show the legal description, freehold or leasehold land and the section size) and may include a LIM (Land Information Memorandum) which advises the status of the property through council. If you have any concerns about your obligations before bidding at Auction, we recommend you consult your legal advisor.
 
                                   
Q
WHAT PRICE DO I HAVE TO PAY TO BUY THE PROPERTY?
A
This is the price YOU are prepared to pay. Other people will perceive different amounts. Generally your price will be established by what property has sold and is currently listed around the area, and also the particular features that the home offers you. 
 
 
Q
I CAN’T BUY AT AUCTION BECAUSE I HAVE TO GET FINANCE
A
That’s ok. You can organize finance through your bank or Mortgage Broker (Phone Bayleys Financial Services on 09 309 6020), an approved level of funding. This may be subject to a Bank’s valuation and could take a few days.
 
 
Q
I WANT TO BUY IT, BUT I HAVE A HOUSE TO SELL
A
There are two answers. If you are in a sound financial position you may organize a bridging loan. Alternatively, you can request a longer settlement date, giving you time to sell and to settle your existing property. Your Bayleys Agent can assist you to have your property appraised to provide you with an indication of value.
 
 
Q
WHAT’S THE RESERVE?
A
The reserve price is usually set on the day of the auction or a day prior, by the Vendor. The reserve is generally established by the intending Purchaser’s feedback during the marketing campaign. Most auctions are held “subject to a reserve price" which means that the owner has nominated a price below which the property may not be sold. Once the reserve price is met, the property will be sold to the highest bidder.
 
 
Q
WHAT IF THE HOUSE DOESN’T SELL? (PASSED IN)
A
If the reserve price is not reached, the property will be passed in to the highest bidder. The highest bidder then has the first right to purchase the property immediately after the Auction at the reserve price, otherwise the property will be offered for sale to all other interested parties.