FAQ’s About Buying

Between 2 and 6 business days, a cooling-off period gives the buyer and seller a chance to back out of the contract.
If you haven't so done already, you can use the cooling-off period for any final checks, such as:

• Building inspection
  
• Pest inspection
  
• Legal checks by a conveyancer or solicitor
  

If you do decide to back out, the buyer pays the seller 0.25% of the purchase price. So, for a $500,000 house, there will be a $1,250 termination fee. Remember, there's no cooling-off period with an auction sale. You might also have to waive the cooling-off period if you've made an offer before auction.

With most auctions happening at weekends, make sure you've organised your 5-10% deposit before hitting the bidding field. The method of payment will depend on the Terms and Conditions set by the selling agent.

• Do your research: Think about the competition. Cautious first-home buyers or cashed-up downsizers?
  
• Write down your upper limit: Decide firmly, the night before, in the calm of your home rather than the heated auction site and keep the physical reminder in your pocket.
  
• Commit to a bidding strategy: Whether you're the only bidder or there are dozens, with offers sailing way past your limit, make a conservative first bid, without a hint of eagerness.
  
• Body language matters: Arms crossed? A sure bidder. Shoulders sinking? Running out of cash. Arms behind back, comfortable and confident = the winning stance of the auction world.
  
• Break down the bidding: You don't have to offer what the auctioneer is calling for. Take control and start by offering them half.
  
• Take the emotion out of it: Stick to your plan and your limit. Remember - there will always be another house.
  

‘Exchange’ is where the contracts are - you guessed it - exchanged. It makes the matter legally binding between parties.
Settlement or 'Completion' is when the parties transfer legal ownership of the property, and the keys are handed over.

If the purchaser can’t settle, or changes their mind, but doesn’t have legal grounds to cancel the agreement, then the vendor can insist that the agreement remain on foot and claim penalty interest on the unpaid purchase price, withhold the deposit or ask for repayment of the actual loss incurred (based on the current market price of the property).