Hints and Tips

Buying a Property At Auction

Auctions can seem like an intimidating affair at the best of times, but they don’t have to be. The key is being well-informed and well-prepared.

I believe the auction process is the most transparent way to buy property. You know what your competing offer is at all times and you get an immediate result.

Here are my top tips for buying at auction:

The auction process:

You must register to bid, so bring along your driver’s licence or passport for identification purposes.

Once the bidding starts, the auction continues until the highest bid is received, or until the property passes in, i.e. the bid hasn’t reached the vendor’s reserve price. If the property is passed in, try to make sure yours is the highest bid, as it usually allows you first right of negotiation with the vendors.

If you are the highest bidder and that bid is above the vendor’s reserve price, you will purchase the property, pay the required deposit and sign the Contract for Sale.

Although it can be disappointing if you miss out on a property you want, try and view the experience as a practice run for the time that you will hold the winning bid - and it will happen, when the timing and the money is right.