With the spring selling season underway and auctions achieving continuously high clearance rates it’s timely to offer some tips about bidding.
In the first instance its worth noting that around 20 per cent of all properties advertised for auction are actually sold before the auction commences so you should make sure the selling agent knows you are interested before the day. Ask them to let you know if there are any offers or consider making one yourself.
If the property does go to auction, on the day ensure you arrive early and make a final inspection. Check the contract of sale, vendor’s statement and auction rules which should all be on display for at least 30 minutes before the auction commences. If you have any questions about the auction rules don’t hesitate to ask the agent.
When bidding at an auction it is important to note, that if the property is passed in below the reserve, the owner through the agent or auctioneer, will first negotiate with the highest bidder for the purchase of the property.
If you have participated in the bidding or have been sitting back watching how it is progressing, and the auctioneer announces the property is going to be passed in, it is a good strategy at this point to make sure you are the highest bidder to secure the option to negotiate with the vendor.
Once the property’s passed in, it is too late. The auctioneer can’t re-open the auction to accommodate a late bid and override the right someone else has secured ahead of you.
How long do you have to negotiate with the owner? This may well depend on whether you are prepared to accept the owner’s price, if you are not prepared to meet the owners asking price, the owner may end negotiations with you immediately and start negotiating with another interested party.
If you are not confident about bidding at auction you should consider using a buyers agent to assist you.
If interested in learning more about this update please contact me today!
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