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3 things you should know about the auction process

By Kevin Kelly

Auctions: They're one of the most popular ways to purchase a property and they're only getting more popular – including when it comes to real estate in Bunbury and surrounding areas. Recent CoreLogic RP Data figures have shown that, nationally, 26 per cent of all homes advertised over 2014/15 were listed as auctions. 

So it looks like if you're going to purchase a property sometime soon, it's increasingly likely you'll do so through auction. With that in mind, here are a few things you should know about the process before you get into it. 

1. There's no cooling-off period

In Western Australia, when you buy a home through private treaty, you have ten business days during which you can change your mind and rescind on the contract. However, you don't have this luxury if you buy through auction. Be sure you're making the right decision before you bid on any property. 

2. You'll need to have the deposit

When someone wins a home auction, along with signing the sales contract, they need to also pay a deposit worth 10 per cent of the sale value to the buyer. As the Western Australian Department of Commerce points out, auction sales typically aren't subject to finance, so you'll need to have saved this total. Be sure you've got enough to cover the cost if the price goes higher than expected. 

3. You can't add special conditions

Let's say you're purchasing a piece of real estate in Australind by private treaty. During negotiations, you could write in special conditions, such as building inspections or certain repairs, as part of the offer in order to make sure you don't get a bum deal. With an auction, your offer can't come with any conditions, so make sure you factor this in when you set out to bid. 

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