If you are looking to purchase an existing dwelling, you need to understand the difference between Private Sale and Auction.
Private Sale
In a private sale the vendor (seller) sets a price for the property then negotiates with potential buyers, usually via a real estate agent.
A key benefit of buying by private sale is the opportunity to make an offer subject to conditions such as obtaining your finance, reviewing the contract of sale and being satisfied with the results of the building and pest inspections.
Private sale provides maximum flexibility in negotiating a sale and offers a 3 day cooling off period.
Auction
With an auction the vendor (seller) sets a reserve price – the minimum amount they’ll accept for the property – and a date on which potential buyers publicly bid for it.
When a property passes its reserve price at auction, the highest bidder effectively commits to buying the property. That’s why you need to do your due diligence before the big day. Look at the sales history of the property and sales results for similar properties in the area to work out if its within your price range. Most importantly arrange building and pest inspections prior to the auction.
Auctions are an unconditional sale and there is no cooling off period. You must have your finance approved if buying at Auction and stick to what you can afford.
Overview
Whether you are looking at a private sale or auction, it pays to be prepared. Plan your budget and know you limitations.
Do your due diligence and arrange building and pest inspections before committing to a property.
If purchasing through a private sale, we recommend your always make the offer subject to conditions such as obtaining your finance (even if this has already been approved) and subject to the results of building and pest inspections.

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