So apparently you need a cheque....

If you want to go to Auction you need a cheque, a cheque that is worth 10% of the final price of the house.

Now, I don't know about you but to me this seems a little..... antiquated shall we say. I could conduct a survey of people my age to ask them if they have a cheque book but I already know the answer, with the exception of one friend that is living in the US not one of them will own a cheque book, ok maybe one or two will but the vast majority, in excess of 99% won't have a cheque book.

In the very, very, exceedingly rate case that I need a cheque I go and get a bank cheque and thats all fine and dandy, it works because I know in advance how much I need for the cheque, who to make it out too etc etc. That doesn't quite work for an auction. I suppose you could go and get one made for 10% of your bidding limit, but that doesn't work so well when you get out bid, or a little carried away and go past your 'limit'. Say you lose the bid, then you have dropped $30 or whatever it is that the banks now charge and all you've got is some expensive scrap paper or something.

Also, does a personal cheque strike you as a little, well bouncy? Obviously you're supposed to have the cash etc etc to back it up when you actually bid at the auction, but that doesn't always happen.

So why do real estate agents continue to stick with the crazy rule that you need a cheque? Whats wrong with a few thousand dollars via EFTPOS on the day of the auction (invariably a weekend) to indicate the intent to purchase and the commitment and then paying the rest of the deposit during the week, from a bank directly into the persons bank account?

Time taken to get money into Vendors account:

• Cheque: Deposited on the Monday following the Auction, 10% in the account by maybe Friday but its a big cheque so the bank probably finds an excuse for it to take longer to clear so they can use the cash a little bit.
• EFTPOS + EFT: ~$3000 on day of auction in Vendors account, buyer goes into bank on Monday morning then the remainder of the 10% in account by Tuesday morning.

Isn't it time Real Estate Sales where dragged kicking and screaming into the 21st Century?

While I wait for that to happen I am off to organise a cheque book.....