Queensland is the market that’s always on buyers’ minds as an affordable alternative to New South Wales and Victoria. It is starting to pick up on the auction market front, with clearance rates rising across the state as more investors pour in.
The number of homes going under the hammer is also lower in Queensland than in its counterparts down south.
But before you jump in and start bidding on a Queensland rental home, it’s important to remember that there are rules and tips to take note of.Different states have varying regulations on how auctions are run, so a property sales campaign run in Brisbane won’t go the same way as one in, say, Sydney might. Being well prepared prior to attending an auction can give you an edge over the competition.
Here are the main factors of note:
1. There is no cooling off period
A top tip emphasized by REIQ is the need to secure your finances beforehand, because “a very important part of the auction process is that the successful bidder on auction day will be required to sign the Contract of Sale and pay the required deposit on the spot.” Thus, you need to be quite sure that you’re prepared to pay up at the end of the day when you make your bid.
2. Check up on the property well in advance
Since there’s no time to go through the property and the accompanying documentation on the day of the auction, you’ll need to do all this beforehand. Consult with the homeowners and get their permissions to do pest and building inspections (note that this will be at your personal expense). Get a copy of the inspection reports, ask the questions you have on your mind, take a look at the Contract of Sale and clarify points early on so there are no surprises.
3. You can’t get a price guide
Under Queensland regulations, a seller or agent may not provide you with a price guide because they can’t know how the bidding will go. This is one ofmany legal considerations you should discuss with your conveyancer, if you require clarity. Even when the property shows up on a listing site with a price, this estimate is set only for the purpose of display. The listing website should provide a disclaimer in this regard. Alternatively, with the seller’s permission, the auctioneer may provide a comparative market analysis that tells you how much similar properties in the area have sold for.
4. Arrive early
The REIQ also recommends going to the auction early the day of Auction so you can review the terms and conditions of the event and double-check that the Contract of Sale is the same one you read previously. There is also a strict registration process – all prospective bidders are required to provide their names, addresses and proofs of identity before being given a bidder number that represents their eligibility to participate.
In Queensland, being able to buy well at auction requires a great deal of preliminary preparation. A bidder can’t make snap decisions, because the moment of bidding is just the culmination of all the pre-auction work you’ve done.
These are just some of the considerations you’ll need to take on board when you contemplate buying a property via auction in Queensland. Remember that you must engage a conveyancer who operates or has knowledge on the local legislation and conveyancing practices within the state or territory you’re buying in, so be sure to work with an experienced and qualified conveyancer who can offer valuable legal advice about your interstate investment. For an obligation-free chat about your plans with our friendly team at Think Conveyancing, contact us on 1300 932 738, or request a free quote online.