Buying property? Then this blog is for you!!

This blog helps the property buying community to more easily share strategies, stories and helpful tips. It is an open blog. Anyone can join, contribute and invite others to join.

If you would like to talk property, please contact us:
Office: 1300 911 576
Martyn Fleming: 0400 000 822
Guy Clarke: 0409 055 128

01 February 2008

Auctions can be scary!

The most important difference to note when you buy a property at Auction in Queensland is that there is no cooling off period as there is when you buy property in accordance with the standard REIQ contract of sale.

At the fall of the hammer the highest successful bidder (if the property is on the market) enters into an unconditional cash contract for the purchase of that property. Therefore it is important that a client has finance and any other due diligence completed prior to the Auction.

When a property is sold at Auction the highest bidder at the fall of the hammer will be required to sign a Contract of Sale and pay a deposit on the spot … usually 10% of the purchase price. The contract governing the auction will be made available for review prior to the Auction day and you should obtain a copy and check the terms and conditions of the contract and seek independant legal advice. You should also check the contract for the nominated deposit amount prior to the Auction. Deposits can be paid by Personal or Bank Cheque.

When clients wish us to bid at Auction on their behalf we have a process we go through. We confirm a bidding limit and any other instructions you have in relation to the Auction and ensure that you have considered and allowed for extra costs such as legal, stamp duty, finance fees etc.

We advise the Sellers Agent handling the property that we will be attending the Auction on behalf of a client but do not indicate who that client is. Obviously they will know once we lodge a completed authority on the day of the Auction.

Wherever possible we like to set an uneven limit, rather than stopping on a round number. For example, if we were bidding on a property valued at circa $400,000, rather than stopping at 400,000, try going to 401,000. A small $500 or a $1,000 bid could make the difference if another bidder is close to their limit.

We also advise that our clients have a Solicitor inspect the Contract of Sale. If you do not have a Solicitor we have Partners who can give you advice in this regard. Even if you have reviewed the contract before Auction day, it is a good idea to review the Contract of Sale on the day to ensure there have been no late changes to the paperwork. The contract will be at the Auction Site on display and the onus is on you the prospective buyer to read and understand this document. Caveat Emptor - Buyer Beware! It is important to clarify details such as settlement terms, deposit and fixtures before an auction commences.


At Morpheus Property we like to keep some simple rules in mind. If clients have contrary instructions we like them to speak up and tell us of any concerns. It’s always better to know of any of these concerns before the Auction starts.

It is important not to be drawn into a bidding war on a property. Emotion can lead to you paying more than you can afford and as I said earlier there is no cooling off period with an Auction. Martyn (my business partner) and I have no emotions. I am a Lawyer and he is an Accountant. Enough said! The unfortunate thing is that Martyn being an accountant also means he has no personality either ... hee hee ... don't worry Marty loves it when I make fun of him!.

We will ensure that the Auction is conducted in accordance with our client’s instructions with no temptation to over step the mark on the day.

At the end of an Auction, we celebrate a successful purchase and it's time to break out the champagne! As you can see, Morpheus Property has the experience and skill to save you stress, time, money and from making a costly mistake in any situation.

Tip: All sound too scary? ... Well worry no longer! We love Auctions and the challenges they present. If you think it is all too much, then contact Morpheus Property on 1300 727 586 and we will gladly step in as your representative.

Yours in property

No comments: