- LeoniMember@leoniJoin Date: 2003Post Count: 7
We are about to purchase our 3rd property but for the first time it will be at an auction. This is due to the vendors being relocated overseas.
Question: How do you provide the 10% deposit required if you are the successful bidder at the end? As I won’t know how much the house will go for do I make sure I have a bank cheque ready with the max 10% I would be prepared to pay? Do you just write out a personal cheque for the amount required?
I am confused how this will work, any assistance would be appreciated.
leonidiclemMember@diclemJoin Date: 2003Post Count: 537
I’m not sure about NSW, but in Vic the auctioneer will usually take a personal cheque, Cash (!) or even a passbook with a withdrawal slip.
I suggest you ask the RE agent what the prefered method is. You can even negotiate before auction for a lower deposit should you be the successfull bidder.
“Be careful not to step on the flowers when you’re reaching for the stars”arungounderParticipant@arungounderJoin Date: 2004Post Count: 10
Before the start of Auction you contact the auctioneer and tell him that you have a blank cheque or any other arrangements that you might have. That way they know before hand and less headaches for you if you are the successful bidder. Good luck in the auction …wanting moreMember@wanting-moreJoin Date: 2004Post Count: 22
We were in a similar situation last week. Our deposit was coming out of the new loan via equity. We asked the estate agent what we could do and he told us a “letter of bank guarantee for the deposit” is very acceptable. This method has to be approved by the owners though prior to auction.In our case it was a mortgagee sale and they had to contact the trust.We left it too late Friday at 4pm to be organised and did not bid.
House ProudGrregMember@grregJoin Date: 2003Post Count: 121
When a friend bought his house for $600k at auction he just gave them an ATM receipt showing his account balance with the promise that he would pay on Monday!
The vendors solicitor would probably have a heart attack if he knew this – but I guess the RE agent just wants to keep things simple so the sale goes through and he gets his commission…Peter SpannMember@peter-spannJoin Date: 2004Post Count: 59
Just about anything will do – certainly a personal cheque is totally acceptable but I do agree – negotiate the % of the deposit regardless – I have bought at auction with as little as 1% deposit – 2% is relatively easy and almost always get 5%