Driving Success with Consultants: Advising, Integrating and Moving Forward

Buying a home at auction can be a confusing and complicated process, especially if it is your first auction. To ensure you don't make any mistakes that could cost you your dream house, you should elicit the help of conveyancing services. Here are five questions to ask them:

1. Is bidder registration required?

Some auctions require the bidders or their representatives to register before the auction. Registration includes getting a bidder number, and in some cases, you may also have to show proof that you can afford the property if you submit the winning bid.

2. How much is due at the auction?

In most cases, auctions require the winning bidder to have verified funds, but that doesn't mean you have to come to to the auction with a suitcase full of cash. Instead, in most cases, you simply need to have cash or a cashier's cheque. Ask the conveyancer which percentage of the selling price you need to have on hand at the auction.

The conveyancer can help you look over the auction contract to determine what's required. Also, ask how long you have to produce the rest of the cash after you submit a winning bid.

3. Are there special conditions of the sale?

To ensure you are prepared, have your conveyancer look over the legal pack (you can obtain this from the auction house before the auction) to review any special conditions of sale.

Also, have your conveyancer make sure that the deed is clear -- that can be essential if you want to sell the property eventually.

4. Can the conveyancer help you access inspection records?

Most auctions feature homes that are sold as-is. To determine whether or not that is the case on the property on which you want to bid, have the conveyancer check the legal pack.

If the home is sold as-is, try to work with the conveyancer to schedule as many inspections as possible for toxins such as lead and mold as well as for structural issues or pests. If arranging your own inspections is not possible, have your conveyancer try to investigate previous inspections.

Even if your conveyancer cannot find old inspection reports, he or she may be able to interview neighbors, previous tenants, real estate agents or others to compile a picture of the property's condition.

5. Will the conveyancer attend the auction with you?

In addition to helping you investigate the state of property and the condition of the property, a conveyancer can even help with the auction itself. A conveyancer can attend the auction with you, helping you to stay calm and emotionally detached, and they can guide you on when to bid and when to stop.