FOR BUYERS-

Don't sign a Contract before:
A. we have checked all conditions are fair & disclose no title restrictions or adverse easements etc.
B. your required finance is approved (preferably in writing).
C. for houses – relevant building/pest/survey reports are obtained.
D. for home units – the strata records are inspected (eg. minutes, financial health of scheme inc. sinking fund balance, repair/defects history, harmony issues etc).

Warning:
Until entirely satisfied about the above concerns, you should resist being tempted into signing a Contract because you can “pull out” during the “cooling-off” period (usually 5 business days). Whilst this strategy removes any risk of being “gazumped” (i.e. by locking the seller into the agreed price during this period), you lose tactical bargaining power to renegotiate a lower price or better Contract conditions (e.g. the seller to fix a building fault or contribute to an impending special levy revealed in a building or strata report), because the seller knows your threat to otherwise withdraw will result in forfeiture of your 0.25% deposit (i.e. it would benefit him at your cost).

Evaluate Risks

• Gazumping – if not signing Contract with “cool-off’.
• Loss of “Bargaining Power” – if signing with “cool off”

• Pre-Auction Offers – declares your hand, so Vendor can start a “Dutch” auction (perhaps against fictional competitors?) or fix a reserve price if the auction is held.
• Avoid conveying any emotional attachment to the property or that your price is not final.
• Consider obtaining an independent valuation or seeking an opinion from a rival agent.
• Check-out websites to research comparable sales so the selling agent can show the vendor your offer has substance.

• A bidder must register beforehand (proof of identification is required – e.g. drivers licence.)
• Experience dummy-runs as an observer.
• Stand in the auction room where you can view rival bidders
• Read body language of bidders (e.g. Shaking of heads, wavering or coaxed bids, all signal weakness/surrender)
• Set and stick to your budget
• Decide whether to bid confidently early, hard & fast, intermittently or hold back to enter with a late “knock-out” increase - to psych out competition, especially if property is stated to be “ on the market”.
• Don’t bid against yourself as the highest bidder, whether before or after the property is “passed-in” – those who walk away can often later negotiate a lower price with a demoralised seller.
• You can authorise (in writing) a representative to bid on your behalf and sign a Contract. (One bidder can represent two or more purchasers).
• Either a cheque drawn to the agent's trust account (or a bond/guarantee) for the 10% deposit (unless a lower percentage is earlier negotiated) must be handed over at the same time the Contract is signed immediately following the auction.
• No cooling off period applies for contracts signed after the auction is concluded or on the same day.
• Auction procedures can be viewed at: www.fairtrading.nsw.gov.au