What Is An Open Auction?

Scott Bailey | 03/31/2022 | 3 mins Reading

Open Auction was designed by our team to ensure honesty and transparency for both buyer and vendor. If multiple buyers become interested in the property, an online platform is established to facilitate a fair and ethical purchase process. All parties can take part in our Open Auction process from the comfort of their own home, without public fanfare or the pressure and stress of a physical auction.

FAQs

The property is advertised as ‘For Sale Now or By Open Auction’. Can I make an offer prior to Auction?

Yes, you can however any offer will only be considered for acceptance if there are definitely no other interested parties. This is why transparency and honesty are so vital with this process. If there are no other parties interested (able and willing to exchange unconditionally), we will take an offer to the owner. However, if there are other buyers interested, the online auction platform is set up to give everyone an equal and fair opportunity to purchase the property on the same terms.

I have been informed that I am the only genuine buyer in a position to commit to the property.

The sale process is forever evolving and a vital part of this process is communication. We will keep you updated as to how many buyers are able to participate at the auction. If at any point other buyers are no longer able to participate, we will provide you with the opportunity to purchase the property without going to auction. You will need to sign and exchange contracts unconditionally ASAP to secure the property prior to the auction date.

What do I need to have in place to be ready to bid at auction or make an offer prior to the auction?

In order for you to be in a confident position to purchase at auction or to make a formal offer prior to an auction, you will need to ensure your finance is in order. If you require finance from a lending institution you will need to send your bank or broker a copy of the contract prior to the auction. Your bank will then advise whether they provide approval for you to bid on the property.

Lending institutions generally prioritise applications for auction properties as you are working within a nonnegotiable deadline.
As part of our commitment to ensuring the buying process is streamlined and open, a pest and building report will be conducted prior to the auction date and will be available to all buyers.

It is best practice to have your solicitor / conveyancer review the contract of sale and undertake any further due diligence you require prior to auction.

How do I participate in an online auction?

The online auction process if very straightforward and a much more private experience than a traditional auction. We use the Realtair auction platform (www.realtair.com.au). It’s a great idea to familiarise yourself with the website prior to auction day however should you wish to participate in the auction, we will send you all the information you need to register and exact instructions on how the auction will take place.

How do I know my registration for the auction has been received?

Once you have submitted your registration online you will receive acknowledgement from Realtair that your application has been processed.

What happens if I am the successful bidder at the auction?

If you are successfully the highest bidder at the close of the auction, you will be legally bound under the standard auction terms and conditions and will be required to immediately pay your 10% deposit and sign the contract of sale electronically.

Once this has been completed, our agent/auctioneer will execute and ‘Exchange’ the contract. This means that the sale is binding and the settlement period will commence. Your solicitor will receive a copy of the completed contract.

We are here to help you throughout this process. For the process to be successful it required the highest standards in communication skills and high contact throughout the lead up to the auction. We will keep you constantly informed to help ensure you are ready and in a position to bid at auction and assure you of absolute honesty and transparency at all times.

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