AUCTION BIDDING TIPS

AUCTION BIDDING TIPS

By Mark Lowrey

14-01-2016 | Bidding can be exciting but stressful. To help you through it, here are our bidding tips.



1. Come to the auction with a positive attitude. Even if you would have preferred not to compete at auction, look on the bright side. Unlike private treaty negotiations, you will know exactly what price your competitors are offering and once the hammer falls, the sale is final.



2. Come to the auction with a definite budget in mind. Auctions often come down to $500 bids so make sure you know your absolute limit.



3. Bring your cheque book – you have to sign the contract and pay the deposit immediately after the auction.



4. Bring some photo ID. This is required for you to register to bid. Your ID must be issued by a government or financial institution and show your name and address. Examples include a driver’s licence or a council rates notice.



5. If you are among several registered bidders, be glad. Take comfort that other people also think this is a great property! If you are the sole registered buyer, don’t assume you’re the only interested buyer. Other buyers might not be able to compete on the day due to delays with finance or their own homes not selling. Their circumstances could change within days!



6. Arrive with plenty of time to spare. Being rushed will make you more stressed. Go to the registration desk as soon as you arrive to register and receive your bidder’s card. If you like, you can pre-register with us before auction day.



7. The auctioneer is entitled to make a bid on behalf of the seller. This is called a ‘vendor bid’. It is often used to start an auction if no one bids, or to raise the bidding to a level that is closer to the reserve price set by the seller.



8. Show confidence. Bid in a loud, clear voice and be mindful of your body language. Stand up straight and raise your bidder’s card high!



9. If you are going to make the first bid, be realistic. The auctioneer has the right to refuse any bid that is not in the vendors’ interests.



10. If the property is going to pass in, make sure you are the highest or last bidder. The highest bidder is offered the first right to negotiate immediately after the auction. If no one bids, five other people could approach us immediately afterwards and you will end up in a quasi auction anyway!