Auction buying tips
How will the auctioneer use vendor bids?
At some stage the auctioneer may need to speak on behalf of the seller and make a ‘vendor bid’. This is both legal and indicated clearly by the auctioneer. In a private treaty sale, when a buyer makes an offer on a property the vendor can counter-offer; a vendor’s bid is essentially a counter offer.
Will the property be outside my budget?
Buyers need to do two things – get the necessary financial advice to determine what they can comfortably afford to pay for a property before the auction and do their own research to see what similar properties have sold for in the area.
Do I have to register?
In many states, you have to register with the auction agent before casting a bid. In any event, you should make yourself well known to the auction agent before the event – it helps them understand that you’re interested, and will help you stand out in the crowd.
What if I cannot be at the auction?
You can still make an offer pre-auction, during the auction and post auction if the property did not sell under the hammer. Buyers can also nominate someone to bid on their behalf as long as the auctioneer is notified prior to the auction and this person is the registered bidder. Many auctions also allow bidding via phone but it is best to check with the sales agent to confirm.