FREQUENTLY ASKED QUESTIONS: Buying property at auction

Going once, going twice...sold! I frequently get asked - Renee, what do I do if I want to buy a property at auction? Here I answer all of your
burning questions around what to expect on auction day.

1. Is there a cooling off period? In New South Wales there is no cooling off period if you buy a property at auction, or on the same day as the property goes to auction. This means that once the hammer falls your cannot back out. Because of this, bidders need to be prepared in case they are successful.

2. Do I need to pay a deposit on auction day? If you are the successful bidder, you must sign the sale contract and pay a deposit on the spot, usually 10% of the purchase price. To avoid complications with finance, speak with your broker to ensure your finance is ready.

3. Do I need a Solicitor if it's just an auction? A purchaser will always require a Solicitor or Conveyancer to act on their behalf and review the property's contract. It is no good bidding on a property only to find out that the property will be tenanted for the next 12 months and you're looking for a place to live in, or that the property is affected by an easement preventing the construction of the swimming pool.

4. What if I win the auction and later find out it has termites? You buy the property as you find it. We always recommend obtaining a building and pest inspection report prior to auction as it will outline whether the property is structurally sound, and whether it is affected with pests/termites. It is an unfortunate expense but a needed one.