SKIPPI79

It seems that alot of houses are sold with an auction. Does anyone have any experience with it?
If you are the highest bidder for a house, how much do you end up paying for the house? Say you bid $300.000 and it's the final offer, how much would we end up paying? As here in belgium you end up paying between 10 and 20% on top of your bid!
Or is your final bid actually the price you pay?

louie

Yes, but..... The amount the seller gets is the amount of your auction bid, but there are significant extra costs which end up elsewhere, the most significant of which is stamp duty. Then of course there are solicitors fees, etc. I'd suggest you consider contacting a solicitor and they can explain in full, but our unit (for which we paid $840k) ended up costing nearly $876k in total.

I think stamp duty varies from state to state so look on the relevant state government website as they have stamp duty calculators, but for $840k in NSW, we paid $33,294.

Hope that helps.

SKIPPI79

I know you have to pay stamp duty, as you have to on every house, but except the normal costs, stamp duty, solicitor fees, possible mortgage fees are there (HIDDEN) cost that should be taken into account??

louie

None that we encountered

walaj

with auction you need to ensure the contract & all terms are agreed before the auction. Thus those survey/pest report/solicitor costs/research needs to be done before you even know if your top bid is higher than the reserve or any other bidders. So it can become very expensive to fail at several auctions, but not as much as getting carried away and paying over the odds.
Depnding on state, there is stamp duty on mortgage as well

bcworld

.....this is the main advantage for the seller at auction....the sale is unconditional. The buyer will pay typically 5-10% deposit and if they subsequently cannot get finance or discover that the property is infested with termites they must still proceed with the sale or lose their deposit.

In answer to the OP's question the price under the hammer is the sale price for the property....any other costs are purely government duties and legal costs.