Don’t sign a Contract before:
- We have checked all conditions are fair & disclose no title restrictions or adverse easements etc.
- Your required finance is approved (preferably in writing).
- For houses – relevant building/pest/survey reports are obtained.
- F or home units – the strata records are inspected (eg. minutes, financial health of scheme inc. sinking fund balance, repair/defects history, harmony issues etc).
Until entirely satisfied about the above concerns, you should resist being tempted into signing a Contract because you can “pull out” during the “cooling-off” period (usually 5 business days). Whilst this strategy removes any risk of being “gazumped” (i.e. by locking the seller into the agreed price during this period), you lose tactical bargaining power to renegotiate a lower price or better Contract conditions (e.g. the seller to fix a building fault or contribute to an impending special levy revealed in a building or strata report), because the seller knows your threat to otherwise withdraw will result in forfeiture of your 0.25% deposit (i.e. it would benefit him at your cost).
- Gazumping – if not signing Contract with “cool-off’.
- Loss of “Bargaining Power” – if signing with “cool off”
- Pre-Auction Offers – declares your hand, so Vendor can start a “Dutch” auction (perhaps against fictional competitors?) or fix a reserve price if the auction is held.
- Avoid conveying any emotional attachment to the property or that your price is not final.
- Consider obtaining an independent valuation or seeking an opinion from a rival agent.
- Check-out websites to research comparable sales so the selling agent can show the vendor your offer has substance.
Useful Websites click here.
- A bidder must register beforehand (proof of identification is required – e.g. drivers licence.)
- Experience dummy-runs as an observer.
- Stand in the auction room where you can view rival bidders
- Read body language of bidders (e.g. Shaking of heads, wavering or coaxed bids, all signal weakness/surrender)
- Set and stick to your budget
- Decide whether to bid confidently early, hard & fast, intermittently or hold back to enter with a late “knock-out” increase – to psych out competition, especially if property is stated to be “ on the market”.
- Don’t bid against yourself as the highest bidder, whether before or after the property is “passed-in” – those who walk away can often later negotiate a lower price with a demoralised seller.
- You can authorise (in writing) a representative to bid on your behalf and sign a Contract. (One bidder can represent two or more purchasers).
- Either a cheque drawn to the agent’s trust account (or a bond/guarantee) for the 10% deposit (unless a lower percentage is earlier negotiated) must be handed over at the same time the Contract is signed immediately following the auction.
- No cooling off period applies for contracts signed after the auction is concluded or on the same day.
- Auction procedures can be viewed at: www.fairtrading.nsw.gov.au
As the listing agent must hold a draft Contract for sale before marketing can commence, we need from you:
- The selling agent’s particulars (free of charge, we will review the sale agency agreement).
- Copies of a recent Council rate (or, if a unit, Strata Levy) notice and, if Land Tax applies (e.g. an investment property where the land value exceeds the threshold level), the assessment for the current calendar year.
- Payment for the Contract disclosure documents – eg. title searches/plans, sewer diagram & section 149 (zoning) certificate, (unless the selling agent orders & collects that certificate from the local Council).
- A list of inclusions (eg. blinds, carpets, light fittings, dishwasher, screens etc) and any fittings to be expressly excluded.
- If a tenancy is to continue, a copy of the Lease and particulars of the letting agent.
- Copies of Home Warranty Insurance Certificate(s) and building plan(s) endorsed with Council’s approval for any additions (e.g. pool, garage, extension – out or up) or alterations (including new kitchen, bathroom or laundry) made to the home.
- Any survey report or plans you hold showing the location of the improvements erected on the land or the accommodation lay-out.
Items D – G do not apply to vacant land
Item G is not required for Strata Title Properties