Buying a property is a big deal, and doing so at a live auction can often rattle the calmest among us. With that in mind, I’d like to offer my tips, hints and suggestions for any would be bidders, so that you are in the drivers seat on auction day, and in the best position to secure your dream property.
The first thing I would mention is perhaps one of the most obvious – make sure you bring your personal identification with you to the auction. Most commonly a current drivers license or passport, you must provide this in order to register to bid – you’d be surprised how many people forget their ID, which is followed by a mad dash home, adding stress to an already tense situation.
If bidding on behalf of a company, corporation or trust, speak to your agent prior to the auction to ensure you have all relevant forms and documents on hand to prove you have the authority to bid and / or sign.
If you are bidding on behalf of someone else, or someone is bidding on your behalf, you will also need to supply the relevant documentation and authority relevant to your situation.
When it comes time to bid, remember there are no prizes for second place – more often than not, the buyer that starts the bidding ends up securing the property. Confident bidding sets the tone and establishes dominance throughout the entire auction, and the auctioneer will always refer to you as the auction proceeds..
This position lets other buyers know that in order to secure the property, they’ll first have to outbid you. When bidding, consider what I call ‘disruptive bidding’ – if things are going up in $10,000 increments, challenge the crowd with a $20,000 rise. Again, assert your intention to purchase.
Be flexible but realistic in you absolute maximum purchase price – missing out on that dream home for a few thousand dollars, or one final bid, may haunt you. Win or lose, leave the auction knowing you gave it everything you had.
And finally, if you are the successful purchaser, don’t forget that you’ll need to pay the full deposit on auction day, as outlined in the contract.