Buyer

If an auction passes in and I buy after, do I get a cooling off period?

In Victoria, the auction rules state that if a buyer was to purchase a property on auction day or anytime from three business days before to three business days after the auction date, there is no cooling off period. This doesn’t necessarily mean it would be a complete unconditional sale as the buyer and seller may come to agreement to certain conditions to get the sale over the line. Though in most cases, the sale would be unconditional, and a sold sticker goes up.

Therefore, you should have all your due diligence done prior to an auction. Make sure you have building and pest inspections, any measuring up or calls to council and most importantly, have your finance in place and ready to go. Even if the property passes in and you go in and negotiate afterward, you must be able to make an unconditional offer.

Being prepared is your best negotiation tool. If you are in a position to treat with the vendor one on one, you are in the driving position. Have your game plan in place for any after auctions opportunities and go as hard as you can do get the best price. In most cases, this is when sellers are most vulnerable and there is a greater chance they will accept an offer less than they originally planned.

 

DISCLAIMER

The following advice is of a general nature and intended as an opinion and broad guide. For all legal, financial or real estate advice you should obtain independent professional advice to do with the specific nature of your circumstances before making any legal, financial or real estate decisions.

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