Auctions can be an exhilarating way to buy a property or home. These types of building sales occur when sellers market and sell their property through public bidding. A typical building auction usually lasts about three or four weeks and interested buyers can come and view the property during this time. The auctioneer will keep monitoring the increasing bids from the potential buyers and will close the bid (sell the property) to the person with the highest offer.
While this can be a great way to buy properties at more affordable rates, buyers should be extremely careful. The rush of these events can easily make you act too rashly and you could end up offering too much for the property.
To ensure buyer satisfaction, most auctioneers or property owners will order a pre-auction inspection of the building.
What Are Pre-Auction Inspections?
Pre-auction inspections are a type of building inspection that is done before the building goes on auction. During this property inspection, the building is evaluated. The entire property is checked for potential flaws and damages and all of these flaws are carefully listed.
The full inspection report is usually presented before the auction day so interested buyers will know exactly what they are dealing with.
Why Pre-Auction Inspections Are Important
It can be very good to get a pre-auction inspection done before planning out your auction. These types of inspections offer many benefits like the following.
- Avoid Contract Cancellations
Property buyers in Australia are entitled to a cooling-off period. This cooling-off period varies for different states. In Victoria, there is a 3-day cooling off period during which time, the property buyer can decide to cancel the contract.
Contract cancellations are usually only likely to occur if the potential buyer discovers that there are a lot of unexpected flaws or damages to the building, making it unsuitable for their needs.
A pre-auction inspection is great for avoiding these unpleasant scenarios because the buyer will already be aware of any issues the property might have.
This can save the auctioneer, property buyer, and all other interested parties a lot of time since all of their efforts are less likely to fall through.
- Generate More Interest
You are likely to get a lot more interested buyers if people are fully aware of the condition of the property or if they know for a fact that the building is in great shape. Pre-auction inspections provide authenticity and can attract a lot more buyers. This can eventually result in much higher bids for the property.
- Peace of Mind
Property inspections always bring a lot of peace of mind to the buyer. Buying a home or building is always stressful. The stress load significantly reduces when you have a full report stating the exact condition of the property.
- Have a Legal Resource
The building report is a legal document that testifies to the building’s condition and worth. This documentation can be helpful later on, should the buyer find some unexpected defects in the property. If the buyer did put in a bid that is subject to building conditions and pests, they are protected.
- An Unbiased Report
The building inspections are carried out by professionals. This provides an unbiased report on the exact state of the building and no issues are hidden away or concealed. Property buyers can make a decision based on the actual property worth and are not affected by over-marketing.
Professional Pre-Auction Inspection in Melbourne
Pre-auction inspections are a great solution for auctioneers who want to attract more attention and enhance the auction authenticity and for those who want their auction to proceed without any issues. If you are planning on auctioning a building, we welcome you to call Guardian Building Inspections. Our team can perform a full pre-auction inspection and will provide you with a legitimate report on the exact condition of the property.
