Page 38 - Real estate: a guide for buyers and sellers
P. 38
Real estate: A guide for buyers and sellers
Like private sales, auctions usually follow Buyers should read them carefully before
an advertising campaign with open house bidding. Auction rules are in the Sale of
inspections. Land Regulations 2005 which are available
at legislation.vic.gov.au.
The agent may contact prospective buyers
to gauge their level of interest and the Anyone at a public auction can ask the
potential attendance at the auction. auctioneer a reasonable number of
questions about the property, the contract
Pre-auction offers and inspections or the rules and conduct of the auction.
A bidder can also ask the auctioneer to
Offers may be made through an agent indicate who made a bid.
before the auction, if the seller agrees.
These offers will usually be a signed Auction conduct
contract and the process of negotiation is
the same as for a private sale. Specific rules regulate the conduct of
auctions and how prospective bidders
If an offer is accepted less than three clear can participate. Substantial penalties may
business days before the auction date, apply to anyone who breaks these rules.
then no cooling-off period applies.
Before bidding starts, the auctioneer must
On the day of the auction the property tell the audience:
may be open for inspection, generally
half an hour before the bidding starts. • the auction will be conducted
This allows prospective buyers to have according to the auction rules
a final look at the property, the relevant
paperwork and the auction rules. • the rules prohibit bids being accepted
after the fall of the hammer
SELLER’S TIP
• bidders will be identified on request
Make sure your lowest selling price has • the law prohibits an intending bidder
been reached before the auctioneer
declares the property ‘on the market’. from making a false bid, hindering
Bids may continue beyond this price; another bidder, or in any way
however, it is also possible there will be intentionally disrupting an auction
no further bids. • substantial penalties apply to anyone
who engages in prohibited conduct
Auction rules • whether or not there will be vendor or
co-owner bids and how they will be
A copy of the auction rules and identified
information statement and any additional • any additional conditions that apply to
conditions must be made available for the auction.
inspection at least 30 minutes before the
auction starts.
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