Recently, local newspaper the Newcastle Herald listed legal tips for purchasing a property at auction. Coming in at Number 3 (of 8) on their list was the advice to organise a pre-purchase building and pest inspection.
Auctions are becoming more and more popular in Newcastle’s strong property market with many vendors choosing to watch the hammer drop on their property. This means as a buyer, it’s important for you to understand how you can prepare for an auction.
NSW Department of Fair Trading recommends that you conduct, “Research, research, and more research,” into the property you are interested in. This includes spending money having a building and pest inspection conducted on the property before you wave your paddle.
Interested to know what other tips the Newcastle Herald gave to buyers in Newcastle?
- Purchasers are allowed to submit pre-auction offers for the vendor’s consideration.
- Discuss the process with your solicitor and visit other auctions to get a feel for them.
- Organise a building a best inspection.
- Ask your solicitor to review the proposed sale contract and negotiate any changes prior to auction date.
- Obtain finance prior to auction date.
- If successful on auction day you are required to provide a deposit straight after the auction.
- Register as a bidder prior to auction date and remember ID on the day.
- Understand that if you are successful on auction day, you will be bound to purchase the property without a cooling off period.
The Newcastle Herald believes that, “If you are planning on purchasing a property at auction the key is preparation.” Read their original article here. We think the best preparation is to have an inspector with years of experience and good local knowledge conduct a building and pest inspection.