6 Tips for Bidding at Auction
Auctions can be a little bit overwhelming. They’re meant to be. It’s why they result in higher prices for the Vendors. To help ease the stress, here are 6 quick tips you should consider before going to bid on a property you love.
Quick auction tips
- Go to other auctions first so you know how they work.
- Have a firm idea of your maximum bid. Auctions are meant to get you excited and in the moment. Bidding without a price ceiling can lead to severe buyer’s regret!
- If you need to change the settlement date, let the Real Estate Agent know well in advance. This is often possible but needs to be signed off by the Vendors.
- Much like the settlement date, if you don’t have the required deposit – usually 10% of the purchase price – let the Agent know well in advance (at least 3 days). This will need to be approved by the Vendors.
- If you have any questions beforehand, don’t hesitate to talk to the Agents at the auction. They want bidders so they will be happy to help you through the process.
- Always keep in mind that when the hammer falls, and you are the last bidder, you have unconditionally bought a house (assuming the bidding has met Reserve). The property will need to be signed off by the bank before the auction. This means sending us a copy of the auction documents 3 working days before the auctions. The bank will have questions about any disclosures or unusual clauses in the auctions documents.