Buying at Auction

Selling at Auction
Before Auction Day:

  • Quiz the Agent and/or Auctioneer about the likely market value of the property to determine affordability. Remember that these estimations are usually below the likely outcome.
  • Seek an introduction to the Auctioneer to ask them how they will conduct the Auction.
  • Don’t be reticent to tell the Auctioneer and/or Agent that you intend to bid; there is no advantage to just turn up on the day and bid as the Auctioneer cannot sell the property to you anyway unless you bid at or above reserve price.
  • Have your finances in order as most Auctions will not allow conditions such as subject to finance approval as part of the standard conditions.
  • Arrange for building and/ or timber pest inspections to be done prior to Auction day and check that everything in the property is in sound working condition.
  • Obtain a copy of the contract for sale in order to determine settlement date and deposit details.
  • Practice making bids with family and friends.

On Auction Day:

  • Arrive before the Auction commences to be sure the conditions of Auction haven’t changed since you last inspected the property.
  • You may need to register as a bidder and this is common practise.
  • Set yourself a limit with a small degree of flexibility. A skilled Auctioneer is there to squeeze as much from you as possible and it’s easy to get carried away with the process and end up paying more than you wanted to.
  • Have a deposit cheque ready.
  • Don’t rush and be prepared to ask the Auctioneer to slow down if you feel the pace is going too quickly.
  • There is no wrong or right way to bid; you can raise your hand or nod your head to acknowledge acceptance of the Auctioneer leading the bidding or you may call out a figure to place that bid.
  • The Auctioneer is entitled to call a “vendor bid” but can only do so below the reserve price set by the property owner. Think of these bids as a “counter-offer” to your bid and a legitimate way of attempting to reach a reserve price consistent with market sentiment.
  • If the property fails to reach reserve price and is “passed-in”, the highest bidder closest to the reserve price is often given the first opportunity to negotiate with the seller after the Auction so it’s in your interests to participate if you’re keen to buy.

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