Home News ​Auction vs. Private sale

​Auction vs. Private sale

Font size :
 
Q.    My partner and I ready to purchase our first property, but we are not sure where to purchase via auction or private sale. Which would be better for a first home buyer?

A.    There is not necessarily a ‘better’ option for first home buyers however an auction and private sale have different processes, so there will be different ways for you to get prepared. When buying at auction, there is no ‘cooling off’ period if you are the successful bidder,  you will normally have to pay the deposit straightaway if you win, pest/building inspections should be completed before the auction day to ensure the property is in a reasonable state, you will not know what the reserve price is until that amount has been reached and property prices often increase rapidly if buyers enter into a bidding war.

However, when buying via private sale, you should have a ‘cooling off’ period where you can change your mind (will depend on the state), you are required to pay the deposit when exchanging contracts, you are able to complete pest/building inspections during the ‘cooling off’ period and if anything is wrong, you can withdraw your offer, however penalties may apply and if there are a number of potential buyers interested in the property, the price may go up.

So, no matter which way you decide to go, it is vital you do your research before making an offer.

Whether you are looking to buy your first home, move home, refinance, or invest in property, a mortgage broker can help. Access loans from all the major lenders, get help with paperwork – plus there is no charge for this service. Get help from a local mortgage broker

Mortgage News and Articles

Many millennials are relying on an inheritance to buy homes Many millennials are relying on an inheritance to buy homes

Lawyers are seeing cases where disputes over inheritance have created tensions within families Read more

Gen Y homeowners fearful of interest rate rises Gen Y homeowners fearful of interest rate rises Many are worried rising interest rates will negatively impact their cost of living expenses, according to a new survey ... Read more

Young Sydneysiders are less keen on homeownership Young Sydneysiders are less keen on homeownership Many would rather ‘rentvest’ than be tied down to a costly owner-occupier mortgage, according to new studies ... Read more

New social housing aims to transform Ivanhoe Estate New social housing aims to transform Ivanhoe Estate The sprawling redevelopment aims to boost the supply of affordable housing in Sydney ... Read more

More mortgage news and articles

Sponsored Links

Thursday, Aug 24, 2017
Top Featured Rates
Top Bank Rates

Get help choosing the right home loan

Let us help you find the right home loan for your needs.

Tell us a bit about your circumstances:
  • Purpose of mortgage
  • Household Income
    $
  • How much do you want to borrow?
    $
  • How much deposit do you have?
    $
  • How much is your house worth?
    $
  • How much do you still owe on your mortgage?
    $
  • What type of mortgage do you have?


  • How much is your new home?
    $
  • How much do you want to borrow?
    $
  • How soon do you want a mortgage?
Next
  • First name
  • Last name
  • Where do you live?
  • Phone number

Special Offers

Related Keywords