Your Guide to Buying at Auction

Before Buying at Auction

1. Research, Research, Research

Before the big day, immerse yourself in the auction scene. Attend as many auctions as you can as a lurker, ahem, we mean observer. This will help you understand the process, the pace, and the terms and conditions. The more familiar you are with the basics of what will unfold on the day, the more confident you'll feel.

2. Talk to the Agent

When you find a property you love, let the agent know you’re serious. Ask them about the expected sale price, the level of interest from other buyers, and any comparable properties in the area that have recently sold. Share your thoughts on the property’s value but keep your maximum limit strictly under wraps.

3. Be Prepared

Preparation is key. Ensure you’ve checked off the following before auction day:

• Finance Arranged: Secure your financing well in advance.
• Deposit Organised: Make sure your bank transfer limit can handle the deposit.
• Contract Reviewed: Understand the terms and conditions thoroughly.
• Reports Reviewed: Go through building, pest, and compliance reports meticulously.
• Costs Calculated: Account for stamp duty, legal fees, and other expenses.

4. Consider Pre-Auction Offers

Sometimes, sellers might entertain offers before the auction. Submit your offer in writing early in the campaign, and make it compelling enough to persuade the sellers to skip the auction. Remember, these offers are unconditional, just like at auction.

On Auction Day

1. Inspect the Property

Arrive early—at least 30 minutes before the auction starts. This gives you time to inspect the property again and size up your competition. Note how many buyers have registered and find a prime spot where the auctioneer can easily see you. No lurking in the background for you!

2. Register to Bid

To place a bid, you must be registered. Bring your ID and ensure the name you register under matches the name on the contract. If you're buying with someone who can't be there, get a signed authority allowing you to bid and sign on their behalf. Early registration is recommended, but you can register anytime before the auction ends.

3. Bidding Tips

Take a deep breath and stay focused. Remember, you're competing with other buyers, not the auctioneer. Here are some tips to help you bid confidently:

• Know Your Limit: Set a maximum limit and stick to it. Bid confidently up to this amount and never exceed it.
• Look the Part: Dress smartly. You want to be noticed and taken seriously.
• Use Body Language: Stand tall in a visible spot. Make your presence known to both the auctioneer and other bidders.
• Stay Engaged: Keep your eyes on the auction. Avoid distractions and don’t signal your limit by whispering or looking uncertain.
• Bid Strongly: Whether you bid early or wait, make your bids loud and clear. Consider making a bid in a larger increment than requested to intimidate other bidders.
• Bid Quickly: Respond swiftly to competing bids to show you're determined.

At the Fall of the Hammer

Three Possible Outcomes

1. Reserve Price Met: If you’re the highest bidder and the reserve price is met, congratulations! The property is yours.
2. Reserve Price Not Met: You’ll have the first right to negotiate with the sellers. If you can't reach an agreement, the property may be passed in, allowing other parties to negotiate until midnight. If still unsold, it may be listed for private treaty.
3. Successful Purchase: By bidding, you agree to buy the property unconditionally. At the fall of the hammer, you'll sign the contract and pay the deposit immediately.

Buying at auction doesn’t have to be daunting. With thorough preparation, a clear strategy, and a confident approach, you can successfully navigate the auction process and secure your dream home. You’ve got this!