Why get a pre-purchase report before an auction?

admin July 6, 2017

Auctions are an increasingly popular way to sell property. With an auction comes a sense of urgCouple moving houseency especially when there are a number of people bidding.  With a private treaty, there’s more opportunity for purchasers to negotiate terms of the contract.  However, if you are the successful bidder at an auction, you cannot make the contract subject to any further conditions.  For example, conditions such as obtaining finance or asking for a longer settlement may not be accepted unless the vendor agrees to them.

It’s also important to note there is no cooling off period at auction. So you need to organise a pre-purchase inspection report before the auction takes place.

A pre-purchase house inspection will include a comprehensive report, complete with photos, giving you peace of mind in knowing the true condition of the property. Our inspector team is based in metropolitan Melbourne and can provide a fast turnaround on inspections to enable you to make a fast purchase decision on auction day.

Here are some tips before you decide to bid at auction:

  1. Do your market research and review the properties and sale prices in the area. We recommend that you attend some auctions, speak with some real estate agents and monitor auction results over a period of time.
  2. We also recommend that you complete your due diligence in regards to legal and finance matters.
  3. Engage an experienced inspector to carry out a pre-purchase house inspection to identify any structural defects and minor maintenance issues.

In a private sale, you have the opportunity to negotiate with the vendor and settle on a sale price.  You may have a real estate agent who will assist and guide you through this process.  The contract can be conditional and if the vendor agrees, the sale may be made subject to certain conditions.  For residential properties, you have three business days which is called the “cooling off” period.  This also applies to rural properties that are less than 20 hectares.

The team at Urban will try to accommodate your needs by completing your pre-purchase inspection within the three business days cooling off period. We have developed a unique and customized mobile application that is used as a tool for on-site inspection reporting. Your inspector will produce a detailed condition report that will be emailed directly to you, making the process easy and convenient.

For more information on our pre-purchase inspections, please click here to read our article.  Call us today on 1300 071 283 or click here for a quick online quote and we can help you through the auction process.