How to bid at auction

Buying at auction is an open and transparent method of purchasing a home.  It is quick, simple and straightforward.

If you have found a property that you are interested in, we want you to feel as comfortable as possible to purchase at auction – so here are some helpful tips

Before auction

• Have finances in order and seek pre-approval for finance if required. We suggest contacting our in-house Mortgage Specialist, Caleb Bax – Loan Market.Caleb has helped many of our clients with their finance needs.
• Ensure you have sufficient funds to cover your deposit as this will need to be paid by 5:00pm the day after the auction.
• Do you research on the property and complete necessary due diligence.
• Satisfy your own requirements for building and pest inspections. All of our auction properties will have a Building and Pest inspection report available.
• Ask for a copy of the contract of sale to review and familiarise yourself with the conditions.  Properties sold under auction terms have no finance, no building and pest conditions, and no cooling off period – however you can request a variation of terms – just ask our team for more information on how to do this.
• Seek independent legal advice.  We work closely with team at Zappulla Trikam & Partners, who specialise in property conveyancing.
• Pre-register to bid where possible.  This demonstrates a level of intent and will ensure you are kept fully informed of all developments, including if any auction-stopping offers are received.

On Auction day:

To buy at auction you must bid! We suggest registering to bid prior to auction day, however you can register on the day as well.  You will need identification with you – a drivers licence or passport is ideal, and once registered, our our team will provide you with a bidding paddle and will answer any questions you may have.

• If you are nervous about bidding, you can appoint someone to bid on your behalf – please just ask our team for a Letter of Authority.  It is best to submit this a few days prior to the auction so our team can ensure the form is completed correctly so your representative can legally bid on your behalf.
• When bidding commences it is important to know that people bid in different ways – some will quietly the crowd and only join the bidding later on, while others will happily lead the bidding. You should bid in whichever manner is comfortable for you – there is no right or wrong way to bid.
• Very rarely will an Auctioneer announce that the house is on the market, so don’t wait to hear those words before you start bidding – you may miss your opportunity to purchase the property.
• If bidding reaches the reserve price, the property will be sold to the highest bidder.
• If the bidding does not reach the reserve price, the property may be passed in and interested buyers will be invited to enter into private negotiations.  In this situation, the Auctioneer will often extend the first right to negotiate to the highest bidder – so it is always beneficial to stay in front during bidding.
• If the reserve price is reached, then the highest bidder will be successful in purchasing the property.

After the Auction

• Immediately after the auction, the successful buyer will sit down with our team and read through the contract before signing.
• Provide your solicitor’s details to our team within 24 hours, so they can receive a copy of the contract.
• You will receive the signed contract within 24 hours of signing.
• Arrange insurance for the property by 5:00pm the next business day after the auction. We can recommend Matos Insurances Service to find you the best possible price for your insurance needs.

The whole team from Ray White Mitchelton are here for any questions that you might have on or before the day and are here to support you in every step of the auction process to ensure that you are bidding with confidence.

Contact us any time on 0452 421 265 or teamadgo@raywhite.com