Denistone Financial Services

We Listen, We Lend

Email Us 02 9114 6663
  • Home
  • About Us
  • Services
    • Home Loans
      • First Home
      • Refinancing
      • Investment
      • Debt Consolidation
      • Self-Managed Super Funds (SMSF)
    • Small Business Lending
    • Specialist Lending
    • Personal Loans
    • Commercial Loans
    • Financial Planning
  • Knowledge Centre
    • Informative Articles
      • LMI Explained
      • Home Loan Pre-approval
      • Home Loan Features
      • Depreciation
    • Video Gallery
    • Calculators
      • Basic Loan Repayments
      • Comparison Rate
      • Extra Repayments
    • Newsletter
    • DFS Blog
  • Testimonials
  • Contact Us
Denistone Financial Services Blog

Your auction day cheat sheet

September 25, 2015 by Julie

Your auction day cheat sheet

We’ve all heard those sage words of wisdom: “Fake it til you make it.” Whether it’s a new job, the first time meeting the in-laws or being stuck in a conversation at a dinner party about NASCAR, it’s a valuable piece of advice that can serve you well in many situations.

One place it won’t be so much of an asset is in the world of home auctions. Having a solid grasp of the auction process is as crucial to your property buying success as finding the right loan – so maybe it’s worth printing the following tips and taking them with you just in case.

What should I do before the auction?

You’ve presumably done your research already, so we can skip that step. You should also have obtained pre-approval for finance from a mortgage lender in case you win the auction – and so you know the price limit you’re working with.

If you haven’t yet visited the home in an open inspection, the advertising period that precedes it could be the ideal time. The home may even be open for inspection right before the auction starts – it’s the law in Victoria.

Finally, you’ll need to register as the bidder before you start throwing any hands up and shouting numbers. This will involve giving the selling agent your name and address, plus some ID. You can do this at any point before the auction starts.

The auction itself

Okay, so the event is about to start and you’ve got an itchy bidding finger. Before you get too excited, remember a few facts:

  • You can’t make a false bid or disrupt the proceedings
  • You can ask questions during the bidding, but only a reasonable amount – don’t go crazy

The property will have a reserve price – or a bare minimum for which it is allowed to sell – but this is the vendor and agent’s little secret. If they want, the auctioneer may announce when the reserve has been reached – or, when the home is ‘on the market’.

When this happens, all bets are off. This property has to end up in somebody’s hands, and that somebody could be you. But be careful what you wish for – there’s no walking away form a bid you regret. Unlike with sales by private treaty, there’s no cooling off period after you win, and that’s the case no matter where you are.

If you failed to nab it but you’re still eyeing up the property, you could have another shot if the reserve price wasn’t met. Under fancy real estate lingo, this means it’s ‘passed in’, and the highest bidder can then negotiate directly with the seller for an acceptable price.

We hope this brief guide will be useful on your auctioning adventures. Good luck out there!

Share this:

  • Click to print (Opens in new window) Print
  • Click to share on Facebook (Opens in new window) Facebook
  • Click to share on LinkedIn (Opens in new window) LinkedIn

Archives

  • March 2024
  • February 2024
  • January 2024
  • February 2023
  • January 2023
  • December 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • December 2016
  • September 2016
  • July 2016
  • June 2016
  • May 2016
  • April 2016
  • March 2016
  • January 2016
  • October 2015
  • September 2015
  • August 2015
  • June 2015
  • May 2015
  • May 2013
  • January 2013
  • December 2012
  • November 2012

Want to find out more? Ask us now!

    Your Name (required)

    Your Email (required)

    Your Phone/Mobile (required)

    Your Message

    Home Loan Calculators

    • Basic Loan Repayments
    • Comparison Rate
    • Extra Repayments

    Knowledge Centre

    • DFS Blog
    • Newsletter
    • Home Loan Calculators
    • Video Gallery
    • Informative Articles

    Our Company

    • About Us
    • Contact Us
    • Compliance

    Services

    • Buying an investment property
    • Buying your first home
    • Commercial Loans
    • Debt Consolidation
    • Personal Loans
    • Refinancing your current loan
    • Small Business Lending
    • Specialist Lending
    • Self-Managed Super Funds (SMSF)
    • Financial Planning

    Search

    © 2012–2025 Denistone Financial Services · ABN 13 151 370 188 · Australian Credit Licence 384704