All Topics / Help Needed! / Assistance with auction buying

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  • Profile photo of nemonemo
    Member
    @nemo
    Join Date: 2004
    Post Count: 38
    April 23, 2011 - 11:55 am

    Hi all
    I am interested in a residential property which very likely is going to go to auction.
    Having never purchased at auction, I'd like to know how I go about making the 10% deposit if I were to be successful on the night – the deposit would be around $100-$150K.
    I couldn't give them a bank cheque ( not knowing how much I'd need to make the cheque for beforehand) and cash is definetely out of the question.
    Please help

    Thanks

    Sandy

    Profile photo of Scott No MatesScott No Mates
    Participant
    @scott-no-mates
    Join Date: 2005
    Post Count: 3,856
    April 23, 2011 - 1:01 pm

    a personal cheque should be fine. Just ask the agent well prior to the auction ie days not minutes. If you need a bank cheque, have it prepared to 10% of the maximum that you are prepared to pay so you can’t exceed this amount.

    Profile photo of ALF1ALF1
    Participant
    @alf1
    Join Date: 2011
    Post Count: 237
    April 23, 2011 - 1:44 pm

    Hi Sandy.

    Often the easiest way to cover deposits, other than a personal cheque being acceptable to the real estate agent/vendor, is what is called a Deposit Guarantee from your bank. I have included a link to a PDF doc on how the CBA works its Deposit Guarantees and I am by no means endorsing the CBA product. It is just so you can understand the fundamentals.

    http://www.commbank.com.au/personal/home-loans/fact-sheets/Deposit_Guarantee.pdf

    I hope this has been of some help to you?
    Kind regards,

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