This article examines the role of the broker in advising clients who intend to bid on a property at auction and the inherent risks involved for the client and the broker.
Clients need to be made aware of the risk of a low valuation and how this may affect them. Unconditional loan approval should be obtained in every case, not just a pre-approval or a conditional approval. Clients should also ensure that they obtain legal advice on the contract prior to auction, along with obtaining any relevant strata or building inspections.