An auction is a public sale where buyers are brought together to compete with each other to purchase a property. If the highest bid is acceptable to the vendor (the seller) the sale occurs upon the fall of the hammer. The property is “passed-in” if the highest bid fails to meet the vendor’s reserve price.
For the vendor, auctions have many benefits including:
Competitive bidding. Buyers compete against each other rather than against you.
Eliminates the pricing issue. As the reserve price for an auction is usually set just prior to the auction, you’ll have the benefit of receiving 4-6 weeks of market feedback to assist you to determine an appropriate reserve price for your property.
Puts a timeframe on the sale process. Private treaty is an open-ended sale process that can continue indefinitely whereas, with auction, the buyers are given a set timeframe to work towards, usually three to four weeks. This ensures that all buyers give the property their full attention during the selling period. They must have their finances organised and be ready to act by the date of the auction. This invariably leads to a more focused buyer and a more successful outcome. There’s also the option to consider offers prior to auction.
No cooling off period. A sale made under the hammer is final and there is no cooling off period.
Fair Trading NSW
Real Esate Instutite of Australia(REIA)
NSW Office of State Revenue
Information for first home buyers
Australian Taxation Office
Land and Property Information NSW
Home Price Guide
Online street directory for Australia
Australian Securities & Investment Commission, Company Names and Searches
Foreign Investment Review Board
State Transit Authority NSW