If you’re successful at auction then the agent will expect a small transfer made on the day (either $1,000 or whatever is possible given your daily transfer limits). Then the balance can be paid by bank cheque or telegraphic transfer the following Monday.
In short, so long as you have sufficient deposit funds in your bank account you will be fine. There are still a very small number of estate agents who require a bank cheque provided on the auction day… this is very onerous and rare though, for peace of mind you can check with the agent before the auction date, just don’t reveal too much in terms of what you’re planning to bid up to (agents are well trained in terms of getting information out of you, which will then work against you, the best response is often ‘you’re doing your research and will be happy to pay up to fair market value’).
It’s always helpful checking with your conveyancer or solicitor as to their availability for settlement. People are often away around holiday periods so you may want to check dates and then negotiate a shorter or longer settlement so there are no complications.
Buying at auction is very much a ‘buyer beware’ proposition. It is highly recommended that you inspect and play around with everything in the property thoroughly (e.g. turn everything on, slide out the rangehood, test the windows and blinds etc.)
If you’re serious about buying I would also highly recommend conducting your own independent building & pest inspection prior to the auction. This cannot be a ‘contract condition’ as it otherwise could be if you were buying off-market or prior to auction.
Also in the odd event that the vendor is providing interested buyers with a building & pest report that they have obtained personally… ignore everything about it, it’s worthless. (they would never reveal anything that works against them)
If you’re successful at auction my strong recommendation is to arrange building insurance immediately afterwards. Rules differ depending on which state you buy in but in most cases you can’t force the vendor to maintain insurance up until settlement, so technically you can be exposed from when the contract is exchanged at auction.
Building insurance is very easy to arrange though, it’s 5 mins over the phone and if required again your solicitor or buyers advocate or finance broker can connect you with the right people. A lot of providers cover you for free insurance between contract and settlement. (note this isn’t required if body corps are involved, more so if you’re buying a freestanding dwelling)
If you’re successful at an auction make sure you put your full legal names on the contract (e.g. identical to how they appear on your passports, including middle names and hyphens, apostrophes etc.). You should do this in each place where you sign the contract, there are often 3 or 4 places where you have to sign.
It’s often a good habit to sign the contract “and/or nominee”, as this makes it easier should you elect to change the purchasing entity at a later stage. It is critical you check this with your solicitor though as each state has a different set of rules, and mistakes could be costly (e.g. double stamp duty!).
Lastly, every auction situation is different, but often the most successful bidding strategy is ‘confidence’. Bid confidently up to whatever limit you set and then stop, you’re more likely to beat out your competition this way.
I hope this helps… good luck and let me know if you have further questions.
