RYAN Property Agents Auction Tips

auction tips - currumbin realty

Following are some useful handy tips regarding preparing yourself to buy a property at auction

1. Do Your Homework

Research comparable properties in surrounding areas and educate yourself on where the property you are interested in should sit in the market. By doing this initial research and speaking with your agent you will know where you stand and it may even result in a new auction budget, higher or lower than you had originally planned.

 2. Be Prepared

Make sure your finances are in place and get a written loan approval from your lender prior to the auction day, as an unconditional binding contract will be entered into and normally a 10% deposit of the purchase price is required to be paid by the successful bidder.

3. Get An Inspection

It is highly recommended to obtain a Pest and Building report well before auction day as to clarify what issues the property may or may not have and to assess any associated costs. A small amount spent prior could potentially save thousands of dollars after purchase.

 4. Get Familiar with the Auction process

Attend as many auctions as you can beforehand to understand the processes, the tricks of the trade and the nature of the players. Not all auctions and auctioneers are the same.

 5. Don’t be nervous

Don’t be nervous and speak clearly. Be confident even if you not experienced with the process.

 6. Think about body language

Competing at auction isn’t just about your body language but what is just as important is keeping an eye on your opponent.

Always stand in a prominent position where you can see other bidders and watch what they are doing because their body language will quite often tell you a lot about how much higher they are prepared to bid.

7. Be seen

Make yourself visible to the auctioneer – particularly more so if there is a large crowd in attendance.

8. Know your limit

If you win the auction, there’s no backing out. If you can’t produce the balance of the purchase price at settlement, you could lose your deposit. So don’t go over your borrowing limits. Your emotions can run high at an auction, so it’s important not to get carried away.

Buying at Auction

Auction is a way of selling property designed to capture the maximum attention of buyers within a set time frame.

The Seller usually sets the reserve price prior to the auction. The reserve is established as a result of potential buyer feedback during the marketing campaign. The reserve is the minimum figure that the Auctioneer is instructed to sell the property for.

All interested parties must register and sign the Auction Bidder Registration Form before the auction starts. (Photo identification must be given at the time of registry)

As a Bidder you must use the numbered identifier provided by the Auctioneer to make a bid during the auction. Bids will only be accepted by registered Bidders.

The Auctioneer will ask for an opening bid and will then nominate the increments by which the bidding can be raised. When bidding attract the attention of the Auctioneer by lifting your numbered identifier.

Auctioneers by law are unable to provide any information to potential purchasers regarding whether a reserve price has been set, or what that reserve price is.

If you are the successful bidder, you will be asked to pay the nominated deposit between (5% and up to 10%) and sign the auction contract immediately.

If the property is passed in and you are the highest bidder you no longer have the first right to purchase the property at the reserve price. The property will be offered to all under bidders and all interested buyers.

In certain cases when instructed by the seller the buyer can buy before auction under auction conditions. All pre-auction offers are to be in writing and on an unconditional basis.

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