Even people with some experience in bidding at auction can find the experience a little daunting. However, with an understanding of the auction process and the actual methods of bidding, much of the nervousness can be taken out of the process.
We hope this will assist you to successfully bid and buy at auction with a minimum of fuss. Please read this document and do not hesitate to ask your PRDnationwide representative any questions you may have.
Satisfy yourself with the property and prepare yourself for the auction with the following steps:
- Inspect the property several times to ensure that you are comfortable with its size, style, location and suitability etc.
- Set the figure in your mind that you are prepared to bid up to.
- Approach your lending body - bank, building society, credit union and so on, to establish your loan capabilities and gain the necessary approvals.
- Make sure you know what the settlement terms of the contract will be should you be the successful bidder.
- Arrive at the auction at least 15 minutes before it begins, to ask the salesperson any last minute questions and advice on bidding you may have.
- View the contracts and all property details, which will be on display near the podium.
- If you have items preventing you from bidding, for example you may need 60 days to settle or you are able to pay a 5% deposit, discuss these with your PRDnationwide representative, as these items are often negotiable.
- Register and obtain a bidding number, you must be registered under New South Wales legislation to bid
Note: Offers can be made prior to the auction. Discuss this with your PRDnationwide representative.
The auctioneer will commence by reading out the conditions of sale and details of the property. Questions may be asked for relating to the auction conditions or the property.
You may bid by:
- Calling out a bid, responding to the auctioneers call by nodding your head, lifting a finger or waving a document. Simply gain the auctioneer's attention.
- Do not be intimidated by another bidder who may bid immediately after you. They are only trying to dominate the bidding and attempt to reduce the competition.
- If you wish to bid a figure less than the auctioneer is calling for, feel free to do so, it will probably be accepted.
- Make sure you are the last bidder if the property is 'passed in', which will ensure you have first right to negotiate with the vendor at the reserve price.
If you are the successful bidder:
- You will be required to sign the contracts of purchase and pay your deposit (usually 10%). In most instances, a personal cheque will be accepted.
- If the property has not sold, and you are interested in the property, approach the salesperson handling the property and let them know. They will help you.
Buying at auction is a logical process of interested parties competing with each other in an attempt to purchase property at market value. The person who perceives the highest value in the property will be the final bidder and probably the new owner. So don't be afraid of bidding, as the person you are bidding against is probably as nervous as you are.
If you have any questions, do not hesitate to ask for assistance. Your PRDnationwide representative will be more than pleased to assist. We do it regularly.
The Australian Government's foreign investment policy has been developed to encourage investment in Australia and ensure that such investment is consistent with the needs of the Australian community. The Government recognises the important contribution offshore investment makes to the development of Australia's industry, resources and community.
A foreign interest is briefly described as:
1. A person not ordinarily resident in Australia
2. A corporation, business or trust in which a foreigner and any associates have 15% or more ownership or in which several foreigners have 40% or more aggregate of the ownership.
There are various forms of investment and proposals with regard to foreign investment in Australian Real Estate. These include:
1. Acquisition of developed commercial real estate valued at AUD$5 million or more.
2. Acquisition of urban real estate - irrespective of size.
3. Acquisition of urban real estate - irrespective of size - unless exempt under regulations.
Proposed acquisition of real estate development (within 12 months) is normally approved unless it is contrary to national interest.
Proposed acquisition of residential real estate is exempt from examination in the case of Australian citizens living abroad who are holders of permanent visas or entitled to hold a 'special category' visa.
Foreign interests are usually given approval to buy vacant residential land on condition that construction of a dwelling is to commence within 12 months. Approval will also usually be granted to buy home units and townhouses off the plan, under construction or newly constructed (but never occupied), on condition that no more than half of the units in any one development are sold to foreign interests.
Other situations where approval is normally granted includes:
1. Foreign companies buying residences in Australia for their senior executives
2. Foreign nationals temporarily resident in Australia for more than 12months buying for their own use as a principal place of residence subject to the sale of the property when they cease to reside in Australia.
3. Foreign nationals purchasing residential real estate as joint tenant with an Australian spouse.
Proposed acquisitions of commercial development is normally approved unless it is contrary to the national interest. This is determined by the Government on a case by case basis.
For more information, visit www.firb.gov.au
Investing in real estate is an important decision in anyone's life. It is our goal at PRDnationwide to make this process as simple and as hassle free as possible. You may like to consider utilising some of the following services that we offer to ensure you are in the best placed position when it is time for you to invest in property.
1. Register with Property Finder on our site.
a. This service will automatically email to you any new properties that come on the market, which meet your criteria.
b. Let the salesperson at PRDnationwide know exactly what you are looking for. Sometime the best buys happen within minutes of a property hitting the market.
2. Let us know that you would like to receive a copy of our Corporate Newsletter and Buyers Guide. This guide includes information on properties, which may suite your needs, but also contains valuable information on the property market, allowing you to feel more comfortable in your buying decision.
3. Look up the suburb profile in our research section for the area that you are interested in. Shows recent sales, price trends and other information about the suburb.
4. View the recent sales section on our Internet Site and search for the area you are interested in. This will show you the properties recently sold, some further information about them and the price they sold for.
Investing in property should be a hassle free, seamless transaction and we hope you take advantage of some of the extra services PRDnationwide offers, to help facilitate this process.