How to bid at an auction

how-to-bid-at-an-auction

Auctions are popular with both vendors and buyers. For buyers, it provides more transparency to the value of the home and the competition you’re facing. For some, they can be daunting but auctions provide many benefits and will have agents present to offer advice when needed.

Here are a few tips on how to succeed at an auction:

Research

Going, going, gone! The sale is final once the hammer goes down, so do your homework! We recommend obtaining a LIM, builders report etc. Know what you’re bidding for.

 

Get your finance approved

Get all your ducks in a row before going to an auction. Buyers who bid at an auction approach their mortgage broker or bank before the auction and ask for unconditional pre-approval for the particular property they are interested in.

 

Talk to your solicitor

Before you raise your hand or nod at the auctioneer you should get legal advice. Your solicitor can review documentation provided by the owner and alert you to any issues or information you may have missed. Complete all necessary documentation before attending an auction to bid on a property and have your deposit ready.

 

Register your interest

Let the consultant overseeing the auction know that you are interested in bidding. Email or phone in advance, this means that you will be fed any information or critical news before the auction starts. This could include the auction being brought forward.

 

Familiarise yourself with the process

Visit a few before attending the auction of the property you wish to bid on. This will show you how it all works, how buyers and the auctioneers behave and allow you to prepare yourself for the big day!

 

Things to know

  • If the auction does not meet the vendor’s reserve price, it will be ‘passed in’. The highest bidder will be given the opportunity to negotiate with the vendor.
  • You can ask a real estate agent to act on your behalf, if you think the process will be too nerve-racking for you.
  • Know your limits and bid with confidence.

 

Did you know that you can watch our Queenstown auctions LIVE?

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