Are You Familiar with Common Auction Terms as A First Home Buyer

Are You Familiar with Common Auction Terms as A First Home Buyer? Buying a house at an auction in Australia can be as dramatic as it gets on the television. For first home buyers, however, buying a house at auctions can be pretty unnerving given the bidding speed, the auctioneer’s rhythmic monotone and the competition among potential buyers. So many first home buyers simply refrain from trying to buy homes at auctions thinking they won’t stand a chance against professional property investors. But auctions need not be intimidating. Especially when you are well versed in the common tongue! There are several jargons associated with property auctions. Understanding these auction terms will make your life a lot easier, if you are planning to buy a property at auctions. Some of the commonly used auction terms are:

Bidder’s guide: It’s a document that the auctioneer provides potential buyers before the auction. A bidder’s guide contains details about registration, necessary paperwork’s, the rules and bylaws of the auction and privacy laws. Reserve price: Set by the vendor or seller prior to the auction, reserve price refers to the minimum price that the vendor is willing to accept for the property. When the bidding fails to meet the reserve price, the property is ‘passed in’, and the vendor has the right to either decrease the reserve price or pull the property off the auction. Vendor bid: It’s the bid placed by the auctioneer on behalf of the vendor, usually, before the property reaches its reserve price. A vendor’s bid can only be made once and must be announced by the auctioneer. Dummy bid: It’s a dishonest bid made by a non-genuine buyer aimed at pushing the bid price up. If proven, dummy bids attract severe legal penalties to the vendor, the bidder or the agent, whoever is deemed responsible. Rises and advances: Generally decided by the auctioneer, it is the amount of money by which the biddings increase at the auction.

On the market: It’s that point during the auction when the bids reach the reserve price, and the auctioneer formally announces that the auction is ‘live’ or the property is ‘on the market’. Passed in: It refers to the situation where price bids fail to reach the reserve price. As a result, the vendor or auctioneer either withdraws the property from the auction or gives the highest bidder a chance to negotiate the sale of that property. Successful bidder: A successful bidder is the one who has placed the highest bid at the ‘fall of the hammer’, and is then obliged to sign the contract of sale. Fall of the hammer: The auctioneer will call for final bids at the end of the auction. When potential buyers stop bidding, the auctioneer will count down the ‘fall of the hammer’, after which the no further That’s where our specialist mortgage brokers at Nfinity financials come in with their years of experience and strong bargaining power. They know which lenders will best suit your situation and mortgage requirements.