Here's a useful guide to buying property at auction

Melbourne is the auction capital of the world and buying a property at auction can be a daunting task for seasoned buyers let alone newbies! Here's a guide that will help you through the process.

Before the Auction

If you’re interested in a property due to be sold by auction, make sure you do your homework.

Check the Contract of Sale or have your legal representative check it on your behalf.

Make sure you have your finances in order, including the 10% deposit that will be due on the day of the auction should you purchase the property.

Let the agent know you may be bidding so he or she will know to look for you during the auction.

Finally, determine your absolute best price to secure the property on the day - and stick to it!

During the Auction
Stand somewhere obvious where the auctioneer cannot possibly miss your bid.

You can start bidding at any time, but the last bid is the one that counts!

The vendor will have a price in mind that they want to achieve, this is called the reserve price.

To progress the bidding, the auctioneer may make bids on behalf of the vendor which will be announced as ‘vendor bids’.

The auctioneer will usually announce when the reserve price has been reached and indicate this by saying ‘the property is on the market’. This is often when the bidding heats up!

When it appears the maximum price has been reached, the auctioneer will call for any last bids.

After the third call, if there are no further bids and the reserve price has been reached, the auctioneer will declare the property sold and will not accept any more bids.

After the Auction

If the property is sold and you are the last bidder, both you and the vendor will be asked to sign the Contract of Sale. The signed contracts will then be exchanged to formalise the agreement.

You will also be required to pay a 10% deposit which the agent will hold in a trust account.

If the reserve has not been met the property will be ‘passed in’, meaning it has not been sold.

If the property is passed in and you are the last bidder, the agent will negotiate with you exclusively to purchase the property at the vendor’s reserve price.

If you are not prepared to meet the reserve, or if the last bid was a vendor bid, the agent is free to negotiate with all potential buyers.

Note that with auctions there is no cooling off period. Once you sign the contract you are obliged to purchase the property.

All documentation will be forward to your nominated legal representative and all parties will continue to liase until settlement.

Making an offer prior to Auction

You are welcome to make an offer to purchase the property any time leading up to the auction. Of course the vendor may not accept your offer, in which case the property will remain on the market and the auction will proceed as planned.

If you’re serious about purchasing the property, your offer will need to be a price the vendor would be happy to accept at auction.

To improve the chances of your offer being accepted consider submitting it in writing and including a cheque for 10% of your offer price as a deposit.

Your offer will be more attractive if there are no conditions than those outlined in the Contract of Sale prepared by the vendor.

You should also allow the vendor time to make a decision by stipulating that the offer will remain open for at least 48 hours.

If the vendor is considering our offer, they may instruct their agent to also seek offers from other interested buyers. The agent will normally provide advice and assistance to all parties should this situation arise.

If the vendor finds your offer acceptable and there are no other interested parties, you will exchange signed contracts and complete the purchase.

All offers should be treated independently and confidentially.

It’s important to note that a property is not sold until both the vendor and the purchaser have signed and exchanged contracts. You should always seek legal advice before entering into any contractual agreement.

Want to know the Value of your property? Click here to email me and book a no obligation free appraisal of your property.

CLICK HERE To Receive your FREE Report "Preparing Your Home For Sale"

Max Pisano
Licensed Estate Agent | Auctioneer
0418378900

Your home is probably the biggest asset that you will ever acquire. With interest rates at their lowest point in over 50 years, investing in your own property to keep it up to date maybe a wise move.

Even if you’re not looking to put your property on the market right now, it pays to find ways to add value to your home in the long term. So where are the best places to invest your money? This article looks at 5 easy ways to add value to your home without spending a fortune.

Vamp up the kitchen

The kitchen is the centrepiece of your home and most real estate agents agree that spending money on the kitchen often returns two-fold in the sale price of your home. If your budget allows, you can replace the whole kitchen with new cupboards, bench tops and up-to-date appliances to really give the value of your home a boost.

If the budget won’t stretch to a full kitchen replacement, take a look at your space and focus on the areas that are looking dated and tired. Look at replacing the cooker and range hood with budget options sourced from eBay or discount appliance centres. Brighten the whole room with a coat of paint and update the cupboards with new door handles. Bench tops tend to be a focal point in a kitchen, so if your bench tops are worn, go ahead and replace them over other renovations.

Give your bathrooms the once-over

Modern bathrooms are a must-have for most home-buyers. A grubby, tired looking bathroom can be very off-putting to people viewing your home. Additionally, most home buyers prefer a residence with more than one bathroom, so if you only have one and can find a way to add another, this will add significant value to your property.

You can give your existing bathroom a quick lift by using a grout pen to whiten the space between your bathroom tiles. If your toilet, sink and tap ware are looking worn or dated, replacing them is a good idea and is a great way to modernise the entire look of your bathroom. Additionally, take a good look at the shower screen and door. An old screen will really date your bathroom, so look at new glass screens without the heavy framework.

Get the floors looking their best

Carpets require regular professional cleaning to keep them looking their best. If your carpet is not cleaned on a regular basis, they will wear out much more quickly. To give your home a quick lift, get the carpets professionally cleaned. If they have reached their use-by date, be realistic about having your home re-carpeted or look at other budget flooring options to give your home a lift.Exposed wooden floor boards are very popular and have the advantage of not dating. If your carpet is worn-out, consider sanding and sealing the floorboards underneath instead of going to the expense of putting new carpet throughout. If you’re lucky, you’ll find the floorboards underneath your carpet have been protected over the years and you’ve got a hidden gem. If you’re not so lucky, you can consider covering them with floating floorboards, which can be an inexpensive option if you shop around. Or visit a budget carpet centre and choose one colour for the whole job.

Create an off street parking space

Does your home have off street parking? If not, finding a way to get your car off the street and under a carport or into a garage will add significant value to your home. Look at adding a driveway and shade sail or carport to the front garden. This is the most obvious way to add a parking space to your home.

Add some elegance to you outdoor entertaining area

Today’s home owners crave outdoor living spaces. Adding a deck, patio or simply creating an ‘outdoor room’ with pavers and furniture could add significant value to your home. If you decide to add a deck or patio, make sure it flows on from your kitchen/dining/living area and keep it looking as open plan as possible. Add doors that can be folded back to bring the outside in. Think about adding a pergola, veranda or shade sail for a stylish, functional finish.

If your home already has an outdoor entertaining area or deck, giving it a makeover can add significant appeal and value. Replace any rotten planks in the deck and give it an oil or varnish. Replace tired old pot plants with modern pots and more attractive plant varieties and look at getting a modern table and chairs. Clean or replace the barbeque and get rid of any untidy yard clutter that’s lying around the place.

Generally giving your garden a make-over is also a good idea. Keep it simple and structured. If you haven’t got a green thumb, consider hiring a landscaper to create a stylish, low-maintenance garden that looks great without the maintenance hassles. Home-buyers are time-poor these days and making sure your garden is low-maintenance will make your home more appealing to buyers.

Keeping your most valuable asset maintained and up to date is something you should seriously consider, even if you’re not looking to sell. If you want to renovate your home but the budget doesn’t allow it, talk to your mortgage broker about refinancing your home loan to give yourself a renovation budget. With today’s low interest rates and competitive financing options, you could not only create an opportunity to add value to your home, you could be better off.

Want to know the Value of your property? Click here to email me and book a no obligation free appraisal of your property.

CLICK HERE To Receive your FREE Report "Preparing Your Home For Sale"

Article Courtesy of Christopher Foster-Ramsay

chris@fosterramsay.com

www.fosterramsay.com

Market Update

The median house price in Melbourne increased by nearly nine per cent in the September quarter in seasonally adjusted terms. This quarter’s higher than expected growth shows a very clear increase in demand. Melbourne’s house price increased to $595,500 from a revised $547,500 in the June quarter. This means that Melbourne’s median house price is now at a new peak, exceeding the previous peak of $559,000 in December quarter 2010.

Interest rates remain low and, with the chances of a further rate cut this year becoming less likely, buyers are taking advantage of this. However, with such a sharp rise in house prices, affordability pressures could start to act as a counter balance to demand in the next few months, particularly for first home buyers.

This quarter’s increase was driven by a strong increase in demand, particularly in August and September. Sustained growth in previous quarters has also instilled growing confidence in the market. The increased demand is supported by a number of positive indicators in Victoria, including population growth, consumer sentiment, clearance rates, and the number of sales.

The average clearance rate this quarter is 14 percentage points higher than this quarter last year. Victoria also recorded a 10 per cent increase in the number of sales this quarter in comparison to last year.

Suburbs with the strongest growth in median prices this quarter were concentrated in the inner and middle suburbs: Balwyn, Brighton East, Ascot Vale, Balwyn North, and Footscray all performed strongly. This is reflective of the relatively high number of premium sales, particularly million dollar-plus sales, in this quarter.

Units and apartments recorded similar level of demand to houses with a 4.8 per cent increase in seasonally adjusted terms to $481,500.

The median house price in regional Victoria was more stable with a 0.8 per cent increase to $308,000. The key regional centres of Geelong, Ballarat, and Bendigo continue to outperform the broader regional market.

In view of such a substantial return of consumer confidence, I would be delighted to talk with you about selling your property. If you’re interested, please don’t hesitate to call me on 0418378900 or Click here to email me and book a no obligation free appraisal of your property.

Feature Property
131-133 Glen Eira Rd St Kilda East
EPR $480,000 - $520,000

Feel on top of the world with brilliant light, designer spaces & cosmopolitan styling in this top floor 2 bedrm security apartment. Quality defined, this uber stylish pad is innovative in its design showcasing 2 double bedrooms (BIRs, main with cathedral ceiling), sleek fully tiled bathroom with laundry facilities (bath), galley style kitchen (dishwasher & mirrored splashback) & open plan living & dining opening to an alfresco balcony. WIth a fresh clean look, this brand new stylemaker features R/C air cond, video intercom, great storage, security rear parking & storage cage, bicycle storage are and is pre-wired for foxtel and Free-to-Air. Love watching the action from this savvy retreat, metres to cafes, train, bus & everything St Kilda East has to offer. www.gleneiraapartments.com

SOLD at Auction - $1,050,000
19 Marara Rd Caulfield South

A step back in time to the glory days of family simplicity, this quaint 3 bedroom Californian Bungalow sits on a desirable corner block of opportunity. Charmed with leadlight windows, high intricate ceilings and loads of family warmth, this parkside charmer enjoys 3 spacious bedrooms (1 with BIRs), updated eat-in kitchen, tasteful bathroom, delightful dining room, spacious family room, 3 toilets, ducted heating & a workshop/garage. Bring it into today, or say goodbye to this cherished home and say hello to a new development (STCA) in this prized locale. Opposite parkland and just metres to Princes Park, a casual stroll to schools, shops, cafes and transport.

CLICK HERE To Receive your FREE Report "Preparing Your Home For Sale"

Max Pisano is a Licensed Estate Agent and Auctioneer based in the Caulfield area Melbourne