Bank Valuation when buying at Auction

Hi there, I'm looking to buy an investment property in regional NSW. Becuase the area is deemed a Category 3 area, the bank must do a valuation on whatever it is I want to buy. 99% of the properties for sale in this area are online Auction. So if the bank won't do a valuation until after the contracts are signed, how is it possible to purchase something at auction when there is no cooling off period?

 

The risk is on the buyer
Finance can still be arranged, just got to hope the valuation comes in at the purchase price.
As per all auctions the client bids, signs the contract THEN the bank does the valuation afterwards. That is the risk a buyer who requires finance takes when buying at auction.
A fully credit assessed pre-approval is usually recommended prior to bidding at auction, even then there is a risk the valuation doesn't stack up.
It is rare that the valuation doesn't match the purchase price, in my experience.

 

The common sense check is to make sure you can find comparable sales in the area around what you're looking to pay. This is what the valuer will be looking at when they try to substantiate the market value.

 

Most bank val for auction purchases would come in at contract price. If it doesn’t then you look out for another lender.