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How to Buy at Auction
Even people with some experience in bidding at auction can find
the experience a little daunting. However, with an understanding of the
auction process and the actual methods of bidding, much of the nervousness
can be taken out of the process.
We hope this will assist you to successfully bid and
buy at auction with a minimum of fuss. Please read this document and do
not hesitate to ask your PRD representative any questions you may have.
Before the Auction
Satisfy yourself with the property and prepare
yourself for the auction with the following steps:
- Inspect the property several times to ensure that
you are comfortable with its size, style, location and suitability etc.
- Set the figure in your mind that you are prepared to bid up to.
- Approach your lending body - bank, building society, credit union
and so on, to establish your loan capabilities and gain the necessary
approvals.
- Make sure you know what the settlement terms of the contract will
be should you be the successful bidder.
- Arrive at the auction at lest 15 minutes before it begins, to ask
the salesperson any last minute questions and advice on bidding you
may have.
- View the contracts and all property details, which will be on display
near the podium.
Note: Offers can be made prior to the auction. Discuss
this with your PRD representative.
During the Auction
The auctioneer will commence by reading out the conditions of sale and
details of the property. Questions may be asked for relating to the auction
conditions or the property.
You may bid by:
- Calling out a bid, responding to the auctioneers
call by nodding your head, lifting a finger or waving a document. Simply
gain the auctioneer's attention.
- Do not be intimidated by another bidder who may bid immediately after
you. They are only trying to dominate the bidding and attempt to reduce
the competition.
- If you wish to bid a figure less than the auctioneer is calling for,
feel free to do so, it will probably be accepted.
- Make sure you are the last bidder if
the property is 'passed in', which will ensure you have first right
to negotiate with the vendor at the reserve price.
After the Auction
If you are the successful bidder:
- You will be required to sign the contracts
of purchase and pay your deposit (usually 10%). In most instances, a
personal cheque will be accepted.
- If the property has not sold, and you are interested in the property,
approach the salesperson handling the property and let them know. They
will help you.
Buying at auction is a logical process of interested
parties competing with each other in an attempt to purchase property at
market value. The person who perceives the highest value in the property
will be the final bidder and probably the new owner. So don't be afraid
of bidding, as the person you are bidding against is probably as nervous
as you are.
If you have any questions, do not hesitate to ask for
assistance. Your PRD representative will be more than pleased to assist.
We do it regularly.
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