New auction process to benefit industry

New auction process to benefit industry


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Hilder Tree Farm, Boyup Brook/Dinninup, listed by Landmark Harcourts, will be the first substantial rural property in Western Australia to be auctioned online. Photo: Landmark Harcourts.

Hilder Tree Farm, Boyup Brook/Dinninup, listed by Landmark Harcourts, will be the first substantial rural property in Western Australia to be auctioned online. Photo: Landmark Harcourts.

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Online property auctions are now a common practice in the Eastern States rural real estate sectors but are yet to take off in Western Australia's rural market - but this could be about to change.

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ONLINE property auctions are now a common practice in the Eastern States rural real estate sectors but are yet to take off in Western Australia's rural market - but this could be about to change.

The process is used in the Perth market and somewhat in Bunbury and only a few smaller rural properties have tested the process.

Landmark Harcourts will be the first WA rural agency to auction a substantial holding through online auction, via the portal FinalCall.

The auction for Hilder Tree Farm at Boyup Brook/Dinninup of 442 hectares will be opened on Tuesday, September 3 at 12 noon until Thursday, September 5, 2019 at 12 noon.

Landmark Harcourts region corporate and business development manager - West, Glenn McTaggart said online auctions would benefit both buyers and sellers.

He said it would give buyers more flexibility for bidding as they "can bid for anytime over a few days".

"Buyers will have more time to think about their bid," Mr McTaggart said.

"It will also be more private for sellers as they don't have to be physically present at the auction."

Mr McTaggart said his only concerns were about internet connectivity, as there was the potential that some buyers might have trouble accessing the auction.

The platform is said to be easy to use and will work on any device (laptop/computer, mobile phone or tablet).

Registration

Details on the auction can be accessed at finalcall.com.au.

Prospective buyers with the intention to bid will need to register with the selling agent, via the FinalCall website, where the buyer's details are recorded.

Once approval has been granted to participate in the open offers online auction, interested buyers will receive an email confirmation of approval.

Once the auction is live, interested parties can login to FinalCall and bid.

Finance

The buyer is required to have arranged finance prior to the auction and if required by the agent, provide evidence of finance approval before the auction.

In the event that the buyer cannot provide sufficient evidence of finance approval, the agent may withdraw the buyer's registration prior to the auction.

Bidding

Bidding will commence at the opening date and time as advertised.

The minimum bid will be displayed on the screen during the auction.

The agent reserves the right to vary the bid size at their discretion during the auction.

There is no restriction on the number of bids a registered bidder can submit.

As each bid is placed, the value must be confirmed by the buyer before being placed and accepted by FinalCall.

The current bid will be displayed on the screen with the bidder's number to ascertain who holds the current bid.

Once the reserve price is reached, it will be shown on the screen.

The vendor reserves the right to submit up to 10 bids during the auction up to the reserve price, which will be clearly identified as vendor bids.

Auction concludes

The auction will conclude once the countdown timer has finished, with no further bids received during the closing period.

The closing period will last at least five minutes and is visible on screen.

If a bid is received during the closing period, the auction timer will reset to the defined closing period to allow all interested parties the opportunity to place their final bids.

Unless advised by the agent, there will be no further extended bidding time.

Once the auction has concluded, the agent will contact the final bidder to advise them of their success in purchasing the property, which will be communicated verbally and in email.

After the buyer has acknowledged their purchase, the agent will forward them a contract for signing.

Deposit

The agent will advise the buyer that the deposit is due and payable within 24 hours via Eftpos or bank cheque.

The buyer will confirm with the agent once the deposit has been paid and forward the payment information as evidence of payment.

The deposit will be held in the agent's trust account until such time as required by the settlement agent to effect settlement.

Settlement

The agent will forward copies of the contract to the nominated settlement agents of the sellers and buyers, who will then proceed to effect settlement of the property.

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