Buying a house at auction

Buying a new home can be stressful at the best of times, but buying a house at auction can be doubly stressful. Here we look at some of the issues you will need to consider when buying your dream home at auction.

DOMDocument::loadXML(): Start tag expected, '<' not found in Entity, line: 2

Looking for a great value home loan with super fast approval?

Get Pre-Approval online & get a response in minutes with MyRate.

Auctions becoming increasingly popular

With the recent boom in the property market throughout Australia, more and more houses and other real estate properties have been sold at auctions. For the seller, this offers the potential to fetch a high price for the property. For the buyer though, it can be a stressful way to buy your dream home if it means competing with other eager buyers to secure your new home.

How auctions work

When a house sells at auction, it will be sold by the auctioneer to the highest bidder on the day. The party selling the house at auction will set a reserve price. Once the bidding reaches the reserve price, the house will be sold to the highest bidder. However, if the bidding does not reach the reserve price, then the highest bidder may negotiate with the vendor to pay the reserve price or any other amount agreed to between the two parties. If the buyer and seller cannot come to an agreement on the price, then the house will be passed in at auction and will therefore not be sold.

If the bidding has reached the reserve price, then the house will sell to the highest bidder on the day. The highest bidder will need to sign the contract and they will also need to pay the holding deposit. The holding deposit will usually be around 10 percent of the purchase price.

When bidding for a house at auction, you should have a deposit, and you should have organised your finance prior to the auction.

Click here to find out more about your home financing options.

Tips for new bidders at a real estate auction

If you are intending to buy a house through auction, here are some tips that will help you through the process:

Go to one or two auctions before you start bidding on any house you want to buy at auction.
If you do not feel comfortable bidding yourself, get a professional or experienced bidder to do the bidding for you.
have your finance organised already with a pre-approved home loan and do not go about your maximum price.
Introduce yourself to the auctioneer beforehand. This way, they will know to keep an eye out for you.
Ask for a copy of the contract prior to the auction.
Get any pest and building inspections done before the auction, because if you are successful, you will need to sign the contract on the day of the auction.

DOMDocument::loadXML(): Start tag expected, '<' not found in Entity, line: 2

Digg this Post page to del.icio.us Post page to Furl

Buying a house at auction What you must know

Home Loan Info.com.au

Home Loans Australia

Refinancing Information

Home Loan Information

Mortgage Broker Information

Featured Home Loan Information

Choosing between a fixed rate or variable rate home loan

There are many options available to you when taking out a home loan these days. One of the first decisions you will need to make is whether to choose a fixed rate home loan or a variable rate home loan. Here we look at each interest rate option including the advantages and disadvantages of each.

Variable Rate Home Loans

Variable rate home loans allow you to take advantage of falling interest rates. With a variable rate loan the interest rate you pay on your home loan varies with the interest rate that is set by the reserve bank of Australia, this means that if interest rates fall so does the interest you pay on your home loan. Conversly, the down side is if interest rates rise you will be paying more interest on your home loan. Here we take a look at situations where you would consider taking out a variable rate home loan.

Adelaide Home Loans and Mortgage Options Reviewed

Looking for a home in Adelaide? Thinking about home loans and finance, but wondering where to start. Our website is hear to assist you in your search for the perfect Adelaide home loan. Our partners are experienced in helping home buyers, just like yourself in finding the best solution available.

Negative Gearing Property - How negative gearing works who is it suited too

Over the past decade or so, investing in property has become all the rage in Australia, especially in the larger property markets of Sydney, Melbourne, Brisbane and the Gold Coast. Many budding investors have been attracted by the huge gains that have been achieved thanks to the Australia-wide property boom. Another attractive reason is that of the tax benefits of negative gearing. But is negative gearing into property really a good investment strategy?

Reduce your interest payments with a line of credit mortgage

A home loan with a line of credit allows you to put all or most of your salary into your home loan and make the bulk of your purchases through the month by using your credit card and taking advantage of the interest free period. By doing this, you can reduce the outstanding balance of your home loan thereby saving you money through reduced interest charges. Here we look at line of credit home loans available in Australia including the benefits and who they would most suit.