If you're eyeing residential property on the Gold Coast, understanding how buying at auction differs from private sales is crucial.

Auction vs. Private Sale: What’s the Difference?

Buying at Auction:

• Competitive Bidding: Public bids with the highest bid winning.
• Fixed Date: Auctions occur on a set date and time.
• Immediate Contract: Sign and pay a deposit (usually 105) on the spot if you are the successful bid.
• Unconditional Contract: The contract will typically be unconditional (not subject to pest and building)
• No Cooling off Period: Auction sales are final, there is no cooling off period.

Private Sale:

• Negotiation: Price and conditions are negotiated privately.
• Flexibility: More room for negotiation and a cooling-off period often applies.

What to Look Out for When Buying at Auction

1. Pre-Auction Preparation:

• Research: Check the property’s history and market value.
• Inspection: Attend open homes and consider a building inspection (don’t just rely on one from the seller)

2. Legal Considerations:

• Contract Review: Have Holt Ronan Lawyers review the auction contract (if possible)
• Due Diligence: Our team can conduct preliminary searches

3. Financial Readiness:

• Pre-Approval: Get mortgage pre-approval and ensure deposit funds are ready.
• Bid Limit: Set and stick to a maximum bid.

4. During the Auction:

• Bid Confidently: Bid decisively and within your budget.
• Stay Calm: Avoid emotional bidding.

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5. Post-Auction:

• Contract Finalisation: Sign the contract, pay the deposit and prepare for settlement.

FAQs:

Q1: Can I inspect the property before the auction?
Yes, attend open homes and private inspections. If possible carry out a building inspection before the auction.

Q2: What if I have questions about the contract?
Contact Holt Ronan Lawyers for contract review and legal advice as soon as possible in the process.

Q3: Is there a cooling-off period after winning at auction?
No, auction sales are final with no cooling-off period.

Q4: How do I prepare financially?
Get mortgage pre-approval and have deposit funds available. It’s a risk with buying at auction that you need to carefully consider as the contract will not be subject to finance.

Q5: What if I don’t win the auction?
Consider other properties or if the property didn’t sell, ask if the property is available for private sale and negotiate terms.

Conclusion

Buying property at auction on the Gold Coast requires preparation and understanding. For expert guidance through the auction process, contact Holt Ronan Lawyers. We're here to ensure a smooth and successful property purchase.

Disclaimer: This advice is general in nature and is not intended to be legal advice. If you would like legal advice, please call our office on (07) 5619 0440 and we would be pleased to assist you.