Hero Image

Methods of Purchase

Methods of Purchase

There are three main ways of purchasing a home

  • Bidding at Auction
  • By Offer or Negotiation
  • By submitting an offer by written Tender or set date of Sale

 

Here is a quick summary guide

 

Buying at auction

On auction day everyone who is interested in the property bids against each other until only one bidder is left. If you are planning on bidding at auction you are expected to purchase unconditionally - so all of your finance, builders reports need to be done before auction day. If the auction doesn't reach the reserve price the auctioneers will typically take instruction from the vendor and negotiate a price or they can pass the auction in - it can either be withdrawn from the market completely or placed on the market priced or by negotiation.

 

 

By Offer or Negotiation

When you make an offer through your real estate agent, the seller may accept your offer straight away or there may be a negotiation process until both you and the seller are happy with the price and the conditions.

The big plus about buying by offer is that you can take time to think – and you can put in conditions that let you check the place out before you’re fully committed.

 

 

Multi-offers 

When multiple buyers make an offer at the same time it goes to a multi. You will be required to sign a form saying you understand that you are in competition and that you are presenting your best offer. The vendor chooses to accept or negotiate with the offer that is the best for them.

 

 

By submitting an offer by written Tender or set date of Sale

Similarly to a multi offer, you make a written bid for the property. It needs to be your best offer, as usually everyone who’s interested in the property puts in their offers at the same time – and you're unlikely to get a chance to negotiate. You can put conditions in your offer if you want, but it’s better if you check things out before hand instead because the more conditions your offer has, the less attractive it will be to the seller. The seller may accept the highest offer – or decide to negotiate with the person whose offer they like best. Or they could reject all the offers. You don’t get the chance to find out what the other offers are.

 

For a more detailed look into each of these methods click on the link on the left.