Thursday, May 7, 2009

BUYING AT AUCTION

On the actual day of the auction you should arrive with plenty of time to spare in order to make one last inspection of the property. In doing so you will have time to check the contract of sale, the vendor's statement and the auction rules.

If you have any questions about how the particular auction will work, be sure and get clarifications from the agent representing the buyer. One key principle in the whole action affair is that if property is passed in below the reserve (minimum asking price of the vendor) then the owner through the agent or the auctioneer will first negotiate with whom ever is the highest bidder on the day.

So if you are attending the auction and are interested in bidding for the property and you hear the auctioneer announce the property is going to be passed in, then it is a good idea to position yourself so that you are the highest bidder. That way you get first crack at the negotiating table afterwards. You need to do this before the property is actually passed in, because once that occurs it's too late to bid.

No auctioneer can reopen the auction to accommodate a late bid and override someone else's position as highest bidder.

Once the after auction negotiations open up, you either accept the owner's asking price or the owner has the right to end the negotiations then and there to start negotiating with yet another buyer.

If you have a question about real estate or would like assistance in locating a property feel free to phone me.

Noel Thompson, Principal Professionals Logan Lifestyles.

Waterford 3299 7733 Browns Plains 3800 4000 Springwood 3808 5544

http://www.llr.com.au

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