Once you’ve decided that you want to make an offer for a property there are two main methods to purchasing: auction and private treaty.
At auctions you’ll be bidding against other potential buyers, will have to make fast decisions and will generally know if you will own the home when the auction concludes. If you’re negotiating through a private treaty you’re negotiating the sale price with the vendor and the initial price is set by the market value of the property, not a price reserve. The process can take days or weeks longer than an auction.
Buying a home at auction is an exciting time – the crowd and competitive atmosphere means it’s easy to get caught up in the passionate bidding. Remember these tips:
If you’re the successful bidder at an auction, you’ll have to sign the sale contract and a 10% deposit on the spot. Your solicitor or conveyancer will then carry out the research needed on the property and arrange the settlement date. When you buy at Auction there is no cooling off period.
Some buyers prefer buying through private treaty because it’s a slower, less emotional process than buying at an auction. Some buyers view it as a ‘fairer’ way to agree to a property price and conditions of sale. Keep these tips in mind if you’re going to buy through private treaty: