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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.

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Quick auction tips

  1. Go to other auctions first so you know how they work.
  2. 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!
  3. 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.
  4. 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.
  5. 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.
  6. 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.
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Our online course "How To Buy Your First Home" walks you through each step to present yourself to the bank as the perfect first-home buyer.

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