What to expect at a Lowe & Co auction...
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Advantages of buying at auction
You get all the information up front
Every Auction I list has a Buyer Information Pack which typically includes a detailed Builders Report, an up to date LIM, a Title and all other relevant information you might need. Having all this information up front helps you to feel confident and comfortable before bidding on the property. Crucially, it also means you are not penalised financially if you happen to miss out - you've got nothing to lose by coming and having a bid on auction day.
You'll know how much they want for it
There is no mystery around how much the vendor wants for the property with an auction, you get a guide price to work with when you enquire about the property, then at the auction, once the auctioneer says 'it's on the market', then you could own it at that level if you're the highest bidder.
You pay fair market value
An auction gives buyers a lot of comfort with the price they are paying, simply because they can see other people are willing to pay the same amount. The market is right there in the room, so the price you pay is fair market value. If you find a property that you love and it ticks all the boxes, then to secure ownership of that property at fair market value really is a great result for you.
There is no secret sealed envelopes
The auction process is very open and transparent. You know the value that the market sees the property at, it's your decision whether to pay that amount or not. Compare it to submitting a tender, or an offer in a multiple offer situation, where you have no idea where other buyers, or the owner see the value at. You might be paying too much, or you might miss out by only a few thousand dollars.
How will I know how much it will sell for?
Every property I sell has a 'Guide Price' - this is the level at which the vendors have asked me to bring buyers from. This should give you an approximate indication of what the vendors expectations are. Vendors who go to Auction are typically very motivated and realistic, they just want fair market value and a cash unconditional sale.
Can I buy the property before the auction?
If the property is advertised as 'If not sold prior' then you can make a pre auction offer, it has to be cash, unconditional and at a level that would make the vendor consider bringing the auction forward. If it is at an acceptable level, then the auction is bought forward and bidding starts at the level of the offer. If the property is advertised as 'not selling prior' then no prior offers can be made.
What do I need to do to buy at the auction?
You need to be in a cash, unconditional position, so you should have all your finance orgnaised and a 10% deposit ready to go. You should make sure the agent knows you are coming to the auction, as there might be last minute disclosures you should be aware of. At Harcourts we also have a few forms for you to sign before bidding.