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Everything you should know about Buying Property at Auction on the Sunshine Coast

If you’re looking to purchase a property on the Sunshine Coast, buying at auction offers you a great deal of flexibility and potential savings. With the right guidance and knowledge, auctions can be a great way to secure your dream property. This article will delve into everything you need to know about buying property at auction in the Sunshine Coast region. From how a conveyancer can help with the auction process to understanding how auctions work to finding great deals and preparing for bidding day. This comprehensive guide will provide you with all the information you need to get the most out of your auction purchase.

About the Sunshine Coast

The Sunshine Coast is known for its beautiful coastline, lush national parks and charming towns. From Caloundra in the south to Noosa Heads in the north, this stretch of sunshine-soaked paradise offers an array of activities for travellers looking to explore the outdoors. Whether you’re surfing in Mooloolaba or taking a cruise up the Blackall Range, there’s no shortage of ways to embrace the Sunshine Coast lifestyle. If adventure isn’t your thing, browse bustling street markets or sample local produce – it’s all part of the Sunshine Coast experience!

Where to live on the Sunshine Coast?

Properties on the Sunshine Coast offer idyllic living, surrounded by stunning natural beauty and calm, tranquil waters. The Sunshine Coast is undoubtedly one of Australia’s premier locations to invest in real estate, offering sunshine, privacy and luxury that cannot be found elsewhere.

What Are the Risks of Buying Property at Auction on the Sunshine Coast?

There are a few risks to consider when purchasing property at an auction on the Sunshine Coast. The biggest risk is that the property may not be worth the amount you paid, as there is no guarantee that it will sell for more than the reserve price. The auction process may be stressful and competitive, and you could pay more than you intended. Additionally, if you’re unfamiliar with the auction process, it’s easy to get caught up in the excitement and overbid on a property.

Get pre-approval from your bank before bidding at auction on Sunshine Coast.

Be aware that you must have your finance in order and complete you due diligence before bidding at auction. It’s your responsibility to have financial pre-approval and seek a property and pest inspection or review the reports provided by the seller. Finally, remember that once you win an auction, you’re committed to buying the property, so make sure you’re absolutely certain before bidding and you have completed all due diligence.

When Should You Engage a Conveyancing Solicitor When Buying a House at Auction?

If you are planning on buying a property at auction on the Sunshine Coast, it is important to engage a conveyancing solicitor early in the process. In addition, a conveyancer can provide advice and assistance in purchasing your new home and help ensure the transaction goes smoothly.

The first step in the process is to obtain a copy of the contract of sale from the agent managing the auction. This document will set out the terms and conditions of the sale and will need to be reviewed by your solicitor before bidding. Once you have reviewed the contract and are happy to proceed, your next step is to arrange for pre-approval before the auction. This will give you peace of mind knowing that you have the funds available to purchase the property should your bid be successful.

Your solicitor will also be able to advise you on any special conditions that may apply to the purchase of your new home at auction. For example, there may be restrictions regarding who can bid on the property, or how much time you have to exchange contracts once your bid has been successful. However, you must be aware of these conditions before bidding, as they could impact your ability to purchase the property successfully.

Once you have reviewed all the relevant information and obtained finance approval, you are ready to start bidding! If your bid is successful, congratulations – you are now the proud owner of a new home or block of land! Your Sunshine Coast solicitor will assist you in arranging for a contract to be exchanged and provide advice about paying any deposits or stamp duty that may be required.

Overall, it is important to remember that engaging a conveyancing solicitor before bidding on a property at auction can ensure that the transaction goes smoothly without any unexpected surprises.

What Exactly Can Your Conveyancer Help You with Before the Auction?

A conveyancer can help you with many things before you buy a property at auction on the Sunshine Coast. They can search for you with the exchange of contracts and settlement process so that you can move into your new home as soon as possible.

We discuss the reasons why you need a conveyancer when buying and selling property

These searches may include:

  • Title Search
  • Plan Image
  • Rates Search
  • Water Search
  • Land Tax Search
  • Information Certificate (Unit Purchase)

Only you can decide whether or not making a pre-auction offer is right for you. However, by taking into account all the factors mentioned above, you should be able to make an informed decision that suits your circumstances.

Is It Worth Making a Pre-auction Offer?

When making a pre-auction offer on the house, there are pros and cons to consider. On one hand, making an offer before the auction allows you to negotiate with the seller and get the home for a lower price.

On the other hand, if your offer is not accepted, you may end up paying more than you would have at auction. Ultimately, whether or not it is worth making a pre-auction offer depends on your individual circumstances. However, it may be worth putting in an offer if you feel confident you can negotiate a good deal with the seller.

If you are not comfortable with negotiating or think that there is a risk that you could end up paying more than you would at auction, then it may be best to wait and bid at the auction itself.

With a pre-auction offer, though, you do have a cooling-off period. In QLD, the standard contract for buying a home comes with a cooling-off period of 5 business days. If you’re not happy, you can cancel the contract during this time – with an auction, there is no cooling-off period.

The cooling-off period ends at 5 pm on the final (5th) day of the cooling-off period. If you get it on a weekend or a public holiday, the cooling-off period starts on the next business day.

How Does a Reserve Price Work at Auction?

The owner sets a reserve price when a property is offered for sale by auction. This is the minimum amount they are willing to accept for the property. If the highest bid at auction is below the reserve price, the property will be ‘passed in’. The auctioneer will then ask if any bidders are willing to buy the property at the reserve price. If there are no takers, the property remains unsold.

In Queensland, auctioneers can accept ‘vendor’ (seller) bids, but only up to the reserve price.

When bidding on a property with a reserve price, it’s important to find out what that reserve is before bidding. The auctioneer will usually announce the reserve price just before bidding opens. If you need help deciding whether you want to bid on a property with a reserve, speak to a Bush to Beach Legal expert for advice.

Conclusion

In conclusion, buying property at auction on the Sunshine Coast is an exciting and potentially rewarding process. It requires careful research and preparation before bidding at an auction, but with the right knowledge and guidance, you can be sure to get a great deal. With the help of experienced conveyancers, you can make informed decisions when purchasing your dream home or investment property. Good luck!

Contact our friendly team for an expert conveyancer on the Sunshine Coast!