Your buying at the sellers rules.
They dictate the reserve price they will sell for, although they won’t advertise the actual price they want!
The price they are willing to sell for, can be up to 10% greater their reserve price that they have set.
This means on the day of the auction, the seller has the right to reject your offer and say they want more.
They will often advertise an unreasonably cheap starting price, that they won’t actually sell for.
You may not have given yourself the prior opportunity to get the house properly inspected or you might
just thought it looked ok on the day of the open inspection.
If you’re buying the house on the day and you didn’t want to spend the cost of an inspection, you are crazy.
There are disclosure basic rules to an auction in Australia.
Auctions are unconditional and do not have a cooling-off period.
Non-genuine attempts to raise the bidding is illegal in Australia, so there should be no fake bidders raising up the price in theory.
But there can be 3 vendors bids made during the auction to raise the price to around the reserve price.
At the conclusion of the auction the highest bidder has the first right to negotiate, if a property fails to reach its reserve price.
Then a deposit is paid and the contracts are immediately signed after an auction sale has been completed.
Vendor bids must be announced to buyers and they are given the opportunity to sell at this price if they wish.
The Form 1 statement that you must sign to own the property is a legal document, however it does not legally have to include information
about the house complying to building regulations, condition of the building itself or encroachments on the property.
It is your responsibility to find out about anything that is not covered in the statement.
Alternatively, employ a house inspector and get a great house.