Auction season is here in Campbelltown, and with clearance rates surpassing 80% every weekend as the market continues to heat up, we have decided to offer our readers a few tips on how to bid at an auction.
Tips on how to bid at an auction
Firstly, you should complete most of your homework and research before you attend the auction. You should have inspected the home and taken all the necessary steps if you are serious about buying. Before the auction itself, ensure you have a plan. You need to know when you want to start bidding, how much you are willing to spend and at what price point you must stop.
On the day make sure all the final loose ends are tied up. You can check the contract of sale, vendor’s statement and any auction rules which may apply. If you have questions or if you need help, ask the real estate agent on site in Campbelltown.
Before the Auction starts, ensure you are in the best position. The auctioneer must be able to see and hear you without obstruction. Every time you make a bid, make sure it is clear by announcing verbally and raising your hand.
The auctioneer should announce if the property is “on the market” if they owner’s reserve price has been reached. If the reserve price is not reached, the property will be passed in to the highest bidder or on a vendor bid. If it is passed in, the owner must negotiate with the highest bidder for the purchase of the property. Therefore, it is a good strategy at this point to make sure you are the highest bidder – so you can negotiate with the owner. Once the property has passed in, you cannot bid again and the auction is closed.
While the owner needs to negotiate with the highest bidder, if you are not prepared to meet the owner’s price, the owner has the right to end negotiations with you and start negotiating with another interested party.
Auction’s can be stressful, but can also be an enjoyable time and memory for you to hold onto. Be sure to be prepared and in the know at all times. If you are not confident about bidding at an auction, you may want to consider asking a Real Estate agent in Campbelltown to act on your behalf or to organize a party to act in your interest.