Page 21 - Smartline eBook - First home buyer
P. 21

Buying a property by private treaty
The process: The owner sets the price they’d like to sell for and their real estate agent negotiates with each potential buyer to reach a sale as close to this price as possible (or higher).
Benefits:
• Less stressful than bidding at auction.
• You can negotiate the price you’re willing to pay.
Buying at auction
The process: Auctions generally run on a four-week campaign, with the auction
held after the final open house. The vendor sets a “reserve” price with the agent and auctioneer. Once bidding is opened you then compete against other bidders until the reserve is reached and the highest bid wins. In New South Wales, South Australia and Queensland, you have to register to bid at an auction.
Benefits:
• The buying process is open and transparent.
• You can still make an offer to buy the property pre-auction.
• If the property is “passed in” and not sold at auction you can also negotiate to buy it.
Tips
1. Before you make an offer, request a copy of the contract of sale for your solicitor or conveyancer to review. Once the sale price has been agreed, you sign and exchange contracts and pay the deposit.
2. At auctions there is no "cooling off" period in which you can change your mind, so you need to stick to your budget.
3. You should have your solicitor or conveyancer review the contract and have completed all pest and building inspections before you bid.
4. You’ll also need to have your finances in order and your deposit ready to pay on the day.
5. If you’re attending in person, get there with enough time to register your interest as a potential buyer (in New South Wales, South Australia and Queensland you need to register to bid with the auctioneer or agent on the day).
    First home buyer guide 21
















































































   19   20   21   22   23