The Auction process can be an emotional time for both buyers and sellers, especially 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 7 tips for bidding at Auction:
If you are bidding at an auction, we recommend you read the Office of Fair Trading’s ‘Bidder’s Guide’ before you attend the auction. You can find a copy of the Bidder’s Guide at http://attachedfiles.aunz.s3.amazonaws.com/25058/BiddersGuide.pdf
1. Arrive at the auction early and register your interest to bid. The agent will ask you for your full name and details as well as some photographic identification
2. Start the Auction. Often when the auctioneer asks for an opening bid everybody waits for each other, its so polite! 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. It can pay dividends to be bold.
3. Finance Approval. Make sure you know your finance limit and have it pre-approved. Having a good relationship with your broker is critical, we often meet buyers who come to auctions and use the words ‘If only……’ when an opportunity passes them by.
4. Be clear and confident with your bids. This will show any other 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’. Also, in the event you are the highest bidder, they will inform you as to what price you can buy the home for (under the auction conditions).
6. Should you be the highest bidder but the property has not been named ‘on the market’, you will receive first right of negotiation post auction.
7. Should you be the eventual purchaser on the day (well done!) then be prepared to pay the 10% deposit (unless otherwise agreed to a different amount prior to auction) and sign the contract. If you are bidding over the phone, the Auctioneer can sign the contracts on your behalf (as per authority to bid forms which must be arranged and signed before Auction).
For more information on the Auction process, click here to watch our Ray White South Coast Auction Video.