Simic Estate Agents

Buying a home at Auction Auction Code of Conduct Is the home you like being sold by Auction? Here are the answers to some commonly asked questions about buying a property at auction. For public display at all Simic Estate Agent Auctions Q.What is a Real Estate Auction? A. Auction is a form of marketing a property through intensive advertising mediums designed to capture the maximum attention of buyers within a set time frame. The process is a means of purchasing Real Estate through public negotiations to determine the true market value of the property. Q. Can I buy before Auction? A. Yes, in most cases you can. You simply submit your offer to the agent on a REIQ contract of sale and if the price and conditions are agreed to, the contract is then completed and property is sold before Auction. In fact, 50% or more Auctions are sold this way. Q.What price do I have to pay to buy the property? A. This is the price YOU are prepared to pay. Other people will perceive different amounts. Generally, your price will be established by what property has sold for around the area and also the particular features that the home offers you. Q.What’s the reserve price? A. The reserve price is usually set on the day of the Auction by the vendor. The Real Estate Salesperson is unaware of the reserve. The only person who will know is the Auctioneer. The reserve is generally established by the intending Purchaser’s feedback. Q. I can’t buy at Auction because I have to get finance. A. That’s OK. You can organise, through your bank or building society, approval to bid up to a price that you are prepared to pay. This offer would be subject to the Bank’s valuation. This is simple to organise and only takes a couple of days. Q.What contract do we sign and what are the standard conditions? A. The contract is the standard REIQ contract. This contract is on display at the Auction. The usual conditions for purchase at Auction are: 10% of the purchase price is paid as deposit either by cash, bank cheque or personal cheque. Settlement date is 30 days from the signing of the contract. Q. How do we bid at the Auction? A. You must register prior to the commencement of the Auction. B. Simply attract the attention of the Auctioneer by holding up your designated number card. Q. I want to buy it but I have a house to sell. A. There are two answers. If you are in a sound financial position you may organise a bridging loan. The other way is to buy on a longer settlement date, giving you time to sell and to settle your house. • The Auctioneer must have a current and valid licence. • The Auctioneer shall conduct the Auction in accordance with prescribed legislation. • The auctioneer must keep a register of all bidders at the auction. • The Auctioneer will clearly state the bid amount. • Prior to selling or passing in the property, the Auctioneer will clearly call the bid three (3) times. • If the Auctioneer advises that the property is “On the Market” or “Selling” then the property will be sold to the highest bidder. • The Auctioneer may or may not seek instructions from the Seller prior to selling or passing in the property. • The Auctioneer will not engage in subscribe to or condone the use of Dummy Bidders. • If the Auctioneer exercises the right to bid on behalf of the Seller, he/she will announce and identify any such bids. • The Auctioneer, whilst working to achieve the best possible sale price for the Seller, will treat all bidders honestly, fairly and ethically.