How does 'Auction Bidding' work?
Auctioneers aim to stir up as many people as possible to bid in order to achieve the highest possible price. If the bidding has reached or is close to the reserve price (the lowest price at which the seller will sell), the auctioneer will ask the seller if they are ready to sell the property at the highest bid. This is normally a short break, when the auctioneers goes inside the house and come back and continue the auction. If the seller agrees, then the auctioneer will announce to the crowd of bidders that the property is now ‘on the market’. After this stage, the bidders may continue to bid and because the property has been declared ‘on the market’ the highest bidder ‘wins’ the Auction and ultimately secures purchase. Then the Auctioneer calls it 3 times and announces SOLD.
If bids do not meet the seller’s price expectations or ‘sellers reserve’, the property is then ‘passed in’ or ‘withdrawn from Auction’. The highest bidder then gets ‘first right to negotiate’ a price with the seller. If the highest bidder and the vendor cannot agree on a price, the real estate agent may approach the other bidders to try and negotiate a sale for their seller client. If the seller is unable to negotiate an agreement with any of the other buyers, the property will then be referred to as “passed in” and real estate agents will start calling each bidders separately and it will become a sort of private sale listing.
When is the property considered ‘sold’ at Auction?
There is no legally binding contract until both buyer and seller have signed the contract of sale.
If you are the successful bidder at Auction: you will be offered a contract in the same terms that was on display before the Auction. Please note that you cannot make the contract subject to any further conditions – for example, ‘subject to finance or different settlement period, unless the seller agrees to them
you will be asked to sign the contract to make your formal offer to buy the property. The seller accepts your offer by also signing the contract
you must pay the deposit specified in the contract (unless otherwise agreed)
there is no cooling-off period.
When you and the seller have signed the contract and the deposit has been paid, the property has been sold and the sale is binding and enforceable.
The sale is then finalised at settlement when:
All checks have been made
The title and transfer documents have been exchanged
The balance of the purchase price has been paid.
Do I need to attend the Auction?
No. We have systems and processes to keep you informed and connected to what is happening during the Auction without you needing to be there. If you are local, we recommend you stay in your car and be available over the phone. In the situation, where you cannot attend the Auction yourself a Power of Attorney is required. This will allow the Buyers Agent / Buyer’s Advocate to sign the contract of sale on your behalf, without requiring you to be at the Auction. BuyersHUB always recommends obtaining independent legal advice when it involves preparing a Power of Attorney form as they can vary.We can recommend a very good and reliable legal firm who are extremely cost effective and highly personalised. They will provide a free review of the contract of sale and section 32 vendors statement, to make sure everything is in order, prior to the Auction or private sale negotiation.
Can I get someone else to bid for me at Auction?
If you’ve never bid at Auction before, having an experienced Buyer’s Agent or professional Auction Bidder do your Auction Bidding is the smartest purchasing strategy for you.
At BuyersHUB our Buyer’s Agents and professional Auction Bidders will fully plan and execute the Auction Bidding Strategy on your behalf, giving you an enviable edge over your competitors – saving you significant amounts of time and money, and providing you with peace of mind. We also have 30 plus years’ experience of the Melbourne property market and use innovative Auction Bidding Strategies to secure the WINNING BID at Auction – we push boundaries so your interests always come first and exceptional results follow. With so many benefits you are in a WIN-WIN situation!
HOW TO REACH US: Talk to our team today about how our experienced Auction Bidding Strategists can save you far more than our fees. Call us directly on 0418 144 644 or send us a message via our Enquiry Contact Form.
What if I don't secure the property at Auction?
If you are unsuccessful at securing your selected property at Auction it may be best to upgrade to one of our More Comprehensive Services where you will receive the right advice from the start. If you upgrade your service within 30 days from the date of the Auction or Negotiation, the Auction booking fee you have paid us to represent you at the Auction will be deducted from your total service fee for the upgraded service.
How / where can we meet for ‘Pre-Auction’ meeting?
A ‘Pre-Auction’ strategy session can be arranged via telephone, Zoom or Skype meeting. Alternatively, we can have a one-on-one meeting with you onsite at the property, prior to the Auction commencing.
Why do I need to pay a Buyer’s Agent to bid for me?
Selling agents generally bid in a very different way to how a Buyer’s Agent would bid at Auction. Generally they bid the way they would like buyers to bid at their Auctions (and push the price to the limit). Even though they may be not connected with the vendor, ask yourself if there is any vested interest or conflicts of interest? Ask yourself ‘Why are they willing to bid at Auction for free?’ Usually it’s because they want to list your property for sale once you’ve purchased your new property. Beware and remember the golden rule: “Free advice is often more expensive than paying for the advice upfront”.
HOW TO REACH US: Call us directly on 0481 822 557 mail at pg@buyershub.com.au.
What does 'Auction Bid' mean?
The auctioneer can set the amount by which bids increase. These are called ‘Auction bids’ or ‘Auction bidding advances’. You can bid at the amount stated by the auctioneer or offer an alternative amount but it is up to auctioneer whether or not to accept an alternative amount.
The auctioneer may:
1.Refuse an Auction bid at any time during the Auction, including when the Auction hammer is falling
2.Resume the Auction at the last undisputed bid or start the bidding again, if there is a dispute over a bid
3.Refer a bid to the seller at any time before the conclusion of the Auction
4.Withdraw the property from sale at any time.
What does the term ‘On the Market’ actually mean?
‘On the Market’ and ‘Reserve Price’ are fundamental terms to know when bidding at Auction. A Reserve Price is a minimum Price a seller is willing to accept from a buyer. During a 4-week Auction marketing campaign, a seller is not required to disclose their Reserve Price to potential buyers prior to the Auction.
A property is sold ‘under the hammer’ at Auction only once bidding is at or close to Reserve Price (the minimum price a seller is willing to accept from a buyer – the auctioneer will declare the property ‘On the Market’ and it will be sold to the highest bidder.
If the Reserve Price is not met, the seller is not required to sell their property, even to the highest bidder. If bids do not meet the seller’s price expectations or ‘Reserve Price’, the property is then ‘passed in’ or ‘withdrawn from Auction’.
While our Auction Bidding Strategy is to bid at least once at the start, a property going ‘On the Market’ is the most important step during the Auction. Buyers should not be scared to ask the question “is the property On the Market?” Once the auctioneer declares property is ‘On the Market’, you’re playing for keeps and that’s when BuyersHUB ups the ante and bids strongly and aggressively at the Auction.
HOW TO REACH US: Call us directly on 0481 822 557 mail at pg@buyershub.com.au.
Should I have an Auction Bidding Strategy?
Buying at Auction can be intimidating if you have never attended a property Auction before. Maybe you’ve heard all the obvious advice about property Auctions. For example, someone may already have warned you to ‘decide on your maximum bid before the Auction starts’. But what about bidding at Auction strategies and tactics that can actually help you gain an edge over competitors come Auction day?
Ultimately, success comes down to how much you are willing to pay for the property, but there are ways to give yourself the best chance of WINNING. Here are 6 tips for buyers to help them get the winning bid at Auction. They are:
1.Do your research and due diligence
2.Write down your upper limit
3.Commit to a bidding strategy
4.Does body language matter?
5.Take the emotion out of Bidding
HOW TO REACH US: Call us directly on 0481 822 557 mail at pg@buyershub.com.au.
Do I need to register prior to Bidding at an Auction?
No. Unlike other states of Australia including NSW, buyers do not need to register to be allowed to bid on Auction day in the State of Victoria – you can simply turn up at the appointed time and start bidding at the Auction. But, the great news is if you engage a Buyer’s Agent / Buyer’s Advocate to undertake the Auction Bidding on your behalf, it means you can remain 100% ANONYMOUS without any of your competitors or selling agents knowing. This is a smart strategy as it keeps the selling agents guessing. And it means you are a lot less exposed on the day in that event that you are the unsuccessful auction bidder – Remember the last thing you want is for any of the selling agents to know exactly what your maximum price limit is, especially if you are involved in a negotiation with the same selling agent on a different property.
What is 'proxy bidding' at Auction?
Using a Proxy Bidder means that you appoint a licensed Buyer’s Agent / Advocate to bid on your behalf as a buyer when either you cannot physically attend a property auction, simply feel uncomfortable or hate the stress of the Auction bidding process, or have little to no experience with the auction bidding process. In order for the Buyers Agent / Buyer’s Advocate to act as your Auction Bidding Proxy, you will need to sign an Auction bidding service authority, plus provide written instructions of your maximum purchase price limit and proposed settlement term conditions, including any depot monies.
In the situation, where you cannot attend the Auction yourself a Power of Attorney is required. This will allow the Buyers Agent / Buyer’s Advocate to sign the contract of sale on your behalf, without requiring you to be at the Auction. BuyersHUB always recommends obtaining independent legal advice when it involves preparing a Power of Attorney form as they can vary. Luckily, we can recommend a very good and reliable legal firm who are extremely cost effective and highly personalised. They will provide a free review of the contract of sale and section 32 vendors statement, to make sure everything is in order, prior to the auction or private sale negotiation. They will also prepare the Power of Attorney (if required) at no extra charge, due to our current and ongoing relationship with them.
How much notice do I need to secure your services?
BuyersHUB ideally requires a week’s notice so you can secure our professional services and ensure all paperwork is in order so we can attend your Auction. But, keep in mind that there are limited spots available for our Auction Bidding Service due to its overwhelming popularity each and every weekend. Therefore, to move forward with this exciting service, please let us know as soon as possible.
HOW TO REACH US: Call us directly on 0481 822 557 mail at pg@buyershub.com.au.
What are your fees for Auction bidding?
The initial engagement fee is $525 (+GST)
Only upon securing the property successfully, you pay a remaining $1050 which is called ‘success fee’.
