Bid at Auction

OUR CLIENTS INVARIABLY FALL INTO ONE OF THESE CATEGORIES:

  • Owners Occupiers.
  • Investors.
  • Self-Managed Superannuation Fund (SMSF).
  • Expatriates.

You have found the property, it meets all your specifications and you have to bid at auction. Most sellers and buyers understand that the main benefit of bidding at auction is that the process allows the market to determine the selling price on the day of auction.

Having to bid at auction can be intimidating for those who are not regular bidders and potentially disastrous for those who are too emotionally involved. We will objectively bid at auction on your behalf thus preventing you from over-paying for the property, particularly as property prices vary from district to district, suburb to suburb and in some cases they vary from street to street within a suburb.

  • Execute the agency agreement.
  • Help you determine the maximum purchase price to negate an impulsive bid.
  • Develop a clear auction strategy for approval prior to auction day.
  • Assist you with all the necessary due diligence research including the building and pest inspections and strata search report (if applicable).
  • Obtain confirmation from your solicitor/conveyancer they have completed the review of the contract.
  • Bid at auction.
  • Execute exchange of contract.
  • Liaise with your legal representative and coordinate settlement amounts and payment of the stamp duty.
  • Assist you with the appointment of specialised services if required.

Bidding at auction in NSW:

  • If you wish to bid at auction for your selected property, you need to be well informed about your rights and responsibilities.
  • Under the law, agents are required to give all potential bidders a copy of a publication called the Bidder’s guide prior to the auction.
  • Before auctioning a property, the seller will nominate a reserve price which is usually withheld by the auctioneer. The reserve price is the lowest price that the seller is willing to accept. If the highest bid is below the reserve price, the property will be ‘passed in’. The seller will then either try and negotiate a price with interested bidders or put the property back on the market.

Some suggestions for those intending to bid at auction:

  • Don’t befriend the selling agents. Do not volunteer information and count to 10 before answering their innocent questions during inspections.
  • Research…Research…and Research again. Do your due diligence so as to become familiar with your suburb of choice and the type of property you intend to buy. For example, when was it last sold? Identifying the last 3 recent transactions will give you a fair idea where the property sits within the market.
  • What do you know about the vendors and their situation?
  • Getting your finance pre-approved is absolutely crucial. Once the hammer falls in your favour, you are committed to the purchase.
  • Setting a price limit including a buffer amount is fundamentally crucial. Do not get carried away emotionally.
  • The input of a legal representative into the contract of sale is absolutely paramount and must be in writing!
  • Be confident in your bidding. Small bids by bidders tend to escalate the winning bid by thousands of dollars in seconds!