Buying at public auction?

Have come across a property I am interested in that is selling at public auction, the real estate agent gave me a list of the conditions which included: bids not subject to building or pest inspection or finance etc. Is this normal? Seems a little unreasonable and the auction is fairly soon, and since the auction doesn't have a price range its hard to know what price they are going to be asking so not sure is it worth getting a building inspection done, if I can in the short time frame (1 week). Also is there anything else to be aware of for a public auction?

 

I've had a B&P inspection booked and done the sameday. Not easy but it certainly is achievable.

Find a reputable company and explain your circumstances. They'll get in touch with the agent and arrange a time for the inspection.

The RE agent is correct. No pre-conditions will be accepted at the auction. You buy and sign the contract as is. You'll need to have your finances (at least a pre-approval) and the inspection sorted beforehand.

Good luck

 

Can we pay 5% deposit instead of 10% if I win during auction?

OR

Can I use the money borrowed from the bank to pay the auction deposit?

Thx

 

It's very normal and is why you need to be very good at working out the value of the place rather than going by what the REA says the range will be as they will often underquote and you will have spent money on a site that you can't afford.

 

You can pay with a 5% deposit if the vendor agrees beforehand. If you want to do this you should tell the REA a few weeks out from the auction and they can ask the vendor if they would accept the smaller deposit.

 

Auctions are unconditional - why would you go to auction then be subject to the buyer's conditions risking the loss of the other buyers?

 

It's an auction!
I've yet to see an auction that has any conditions subject to