How to survive an auction
The golden rules of bidding at auctions are to be confident and be prepared. Some research done prior to the day, along with the right advice, will secure your property with a minimum of stress. Here is a step-by-step guide:
• If, after inspecting the property, you are interested in buying it, let your agent know. This ensures that you will be advised if any other offers are made by another party prior to the auction day.
• Prior to the auction, check the sales contract. Ask your solicitor or legal representative to advise you on the details and any special conditions of the sale.
• Organise your finance. If you will be moving in, its advisable to have an agent inspect your current property to establish a likely sale price
• Will you be attending the auction, or will someone else be representing you? If so, they will need a letter of authority to do so.
• Taking into account recent sales in the area, set a price which you are prepared to bid to . When bidding, speak clearly and confidently. Try not to be carried away by the excitement of the event, remember, once the hammer has fallen, the property is sold.
• You will also need to arrange a cheque for a deposit on the day of the auction. Personal or Bank cheques are fine as is a Deposit Guarantee Bond in most cases.
• Passed in at auction, means bidding has failed to reach the owner’s reserve price. Your agent will confer with the owner and normally the highest bidder will then have the right to negotiate the sale price of the property. Most passed in properties are sold rapidly after an auction.