Why are property auctions popular in Victoria?
Long gone are the days when it was stereotyped that auctioned properties are distressed ones. For many years now, auctions have been popular in Victoria real estate market as it is:
- Transparent. Auctions set a fair value and are open for everyone. Before the actual auction takes place, relevant documentation is provided to bidders. Following the due diligence checklist, buyers are given comprehensive information required to further assess the property.
- Competitive and fair. The willingness of others to bid on the property is an added assurance that you share the opinion of the property’s value. Everyone’s on a level playing field. Bidders have the power to determine the purchase price and the market. Victorians are not required to pre-register to bid on auction day. Unlike in other states, there is no restriction on vendor bids in Victoria.
- Fast. When buying a home at an auction, there would be no cooling off period. Purchasing a property in an auction often translates to a motivated seller with a clear timeline.
In the week of September 26, 2021, Victoria had a clearance rate of 87% with 151 properties sold at auctions.
How much deposit is required?
By law, there is no required amount of deposit but usually, it’s set at 10% of the purchase price.
How can you pay the deposit?
This may differ depending on the terms and conditions set by the selling agent. It will be helpful to chat with the agent before the auction to confirm the methods of payment that they are willing to accept. Generally, these methods are acceptable:
- Personal cheque
- Bank cheque
- Deposit cheque
Here are some useful tips that may come in handy before attending the auction:
- Get a counter cheque to use on the day
- Get a bank cheque for 10% of your max bid limit
- If you want to pay a partial deposit, you can ask the seller before the auction if they would accept a part deposit with the remaining amount due on a specified date.
Again, it is important to communicate with the seller before the auction to know more about their terms and conditions.
Auctions in time of Coronavirus
Yes, under the restrictions you can put your home on the market for private sale or auction indoors or outdoors with a limit of 10 people excluding the minimum number of people required to hold the inspection and residents of the property, subject to a density limit of 1 person per 4 sqm. Social distancing must be observed for at least 1.5 metres between yourself and others. Face masks are required indoors and outdoors unless an exception applies.
Real estate agents must request that attendees check-in using the Service Victoria QR code app regardless of the duration of the visit. It is also the responsibility of real estate agents to confirm that you are not a resident of metropolitan Melbourne for everyone’s safety.
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