Auctions are held at a specific time and place and potential buyers bid what they’re willing to pay for the home until the top bid is reached. To bid at auction you need to purchase the home unconditionally, so you’ll need to get your ducks in a row before the auction. Be prepared to pay the deposit yourself right after bidding – this is generally 10% of the purchase price, unless you’ve agreed otherwise with the vendor before the auction.
Price by negotiation
Your offer is a legal contract called the Sale and Purchase Agreement. It should be based on a standard industry template. If there are any changes, the real estate agent must point them out.
You add your details, the price you’re willing to pay, and any conditions. Conditions are things you want resolved before the sale. For example, you might make the sale conditional on having your loan approved, or on the vendor fixing issues with the house.
Conditions are there to help you, but they can also become sticking points in the sale. Make sure you find the right balance and seek legal advice.
Similar to price by negotiation, anyone interested in a property has the opportunity to put in a written offer (the 'tender') by a certain date and time (the 'deadline'). All tenders are then presented to the seller at the same time on the deadline, and it’s then up to the seller to decide if they want to accept any of the tenders.
Similar to tender, the seller sets a deadline and potential buyers can put forward an offer and negotiate before that deadline.
In a private sale you negotiate directly with the seller to buy your new home - no real estate agents are involved. It pays to be cautious and consult your lawyer on every move you make, to ensure all parties are meeting their legal obligations.
House and land package
When you buy a house and land package, you enter into a contract to build a house for a fixed price. This is also known as a turn-key contract. You will typically have to pay a 10% deposit at the point of signing the contract and pay the balance at completion of the build process. This will depend on your agreement with the building company.