11 point Auction bidding checklist
You need to assume you will be successful; remember, if you are the highest bidder at the fall of the hammer the property is yours—you do not get any finance clauses, cooling-off period or chances to double check the property’s structure.
At auction, if you win it, you buy it, so it’s critical to be prepared for all eventualities on the day by following our auction buying checklist which you want to have completed before the day of the auction.
Auction Buying Checklist:
- 1. ✅ Complete inspection checklist
- 2. ✅ Arrange building and pest inspection
- 3. ✅ Arrange home loan approval
- 4. ✅ Get a property valuation
- 5. ✅ Complete market research
- 6. ✅ Understand auction results in your area
- 7. ✅ Decide on your highest and final price
- 8. ✅ Obtain a copy of the contract of sale
- 9. ✅ Get legal advice about the terms and conditions of contract
- 10. ✅ Arrange title search and other checks with conveyancer (title search, encumbrances)
- 11. ✅ Confirm with the real estate agent how much deposit is required, and how to pay
If you win at auction you will need to pay a deposit; this can be a percentage of the winning bid (for example, 5% of $500,000 purchase price, or $25,000) which you will need to pay on the day.
You will need to ask the real estate agent prior to the auction how you can pay this and if they will accept a personal cheque, bank cheque, deposit bond or electronic transfer.
How Do You Win at Auction?
- 1. Set your budget and stick to it.
- 2. Stand in a good position where the auctioneer can see you.
- 3. Use slightly uneven numbers for your bidding (e.g. raising by $7,000 to $437,000).
- 4. Consider getting a friend or buyer’s agent to bid for you at auction if you’re nervous.
- 5. Control the momentum of the auction.
- 6. Look confident and relaxed.
- 7. Stick with your walkaway price.
Bonus: How to Make an Offer on a Property Before Auction
In some cases, even though a property is going to auction, the seller may be willing to take offers before to sell it even quicker.
This is the same process you would follow when normally making an offer on a property and the advantage is that in Queensland you can submit an offer on a property that is subject to finance, and building and pest.
- 1. Submit an offer in writing to real estate agent
- Use our offer to purchase template
- Include the following details on your offer: purchase price, deposit, finance (days to complete), building and pest (days to complete), settlement (days from the contract), other conditions.
- 2. Negotiate over email or in writing
- The real estate agent needs to present all offers in writing to the sellers, so it doesn’t matter how silly you think your offer might be it is still worth putting it in writing and getting it in front of the sellers.
- 3. Sign the contract of sale
- If your offer has been accepted the real estate agent will complete the contract of sale (with your offer details) for you to sign. You can get your solicitor to review this if you like.
- 4. Get your finance approved