Buy Smarter at Auction
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 Northern Rivers 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 least 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.
- If you have items preventing you from bidding, for example you may need 60 days to settle or you are unable to pay a 10% deposit, discuss these with your PRD Northern Rivers representative, as these items are often negotiable.
- Register and obtain a bidding number, you must be registered and provide photo identification under NSW legislation to bid.
Note: Offers can be made prior to the auction. Discuss this with your PRD Northern Rivers representative.
DURING THE AUCTION
The auctioneer will commence by reading out the conditions of sale and details of the property. Questions may be asked 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 and show the auctioneer your bidding number.
- 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. Contact us today.