The Auction process can be an emotional time for both buyers and sellers, especially the Auction day itself. With the right advice and plenty of preparation you can and will become familiar and confident with the bidding
process. Below we take a look
at our Top Tips for bidding at Auction:
Top Tips – The “How To” of buying property at Auction
1. Make sure you know your finance limit and have it pre-approved.
2. Arrive at the auction early to register your intent bid. If you are bidding on behalf of someone, make sure you have a letter of approval, signed by all parties and a copy of their photographic identification. The agent will ask you for your full name and details as well as some photographic identification. You will be issued with a bidder’s paddle that will display a number. This will be your individual ID for the duration of the Auction. (The number is used to clearly ascertain the bidder and to track the bids as they are given – as per the Property, Stock and Business Agents Act and Regulations, this keeps the Auction process transparent)
3. At the start of the Auction, the Auctioneer will ask for an opening bid. Often when the Auctioneer asks for the opening bid everybody waits for each other, it is so polite but it can be detrimental, as being the opening bidder clearly signals your intention to purchase the property and puts any other pending bidders on notice that they will need to act fast!! It can pay dividends to be bold.
4. Be clear AND confident with your bids. This will show any other registered parties that you are genuine and determined to buy the property!
5. Pay close attention to the agent and Auctioneer. They will keep you informed and let you know when the ‘property is on the market’ this generally means the Vendor’s reserve price has been met or exceeded and they are now very willing to sell the property to the highest bidder.
Extra notes for Auction Day
A Vendor may make a “Vendor Bid” at the start of the Auction (as an opening bid if no one else submits an offer) or during the Auction (generally if the Auction is going slowly or if the offers made are not close enough to their set Reserve Price). The Vendor Bid is given to the Auctioneer before the Auction and it is the Vendors set Reserve Price (this price will not be disclosed to potential purchasers’ before the Auction, if at all). The Vendor DOES NOT have to make a Vendor Bid, but if they chose to the Auctioneer will state clearly “Vendor Bid” and then the monetary value of their bid. Bids will continue from here or, if the Vendor is not satisfied with the offers made, the property may be “passed in” meaning the property is no longer for sale by Auction.
If you would like more information, fill out the below form with “Auction Information” in the message field and we will get back to you!