Buying at Auction

Melbourne is the undisputed property Auction capital of the world. Thousands of property transactions occur at or prior to Public Auction each month but bidding to buy at auction is a task not everyone enjoys. Here are some tips:   1 Register your interest     Upon first inspecting a property that you may wish to buy, it is important to register your interest with the company representative managing the sale. By doing this you can be contacted in the event that the property is sold prior to Auction. C+Weber follows a strict procedure when selling prior to Auction so that offers received from buyers are treated even-handedly and with total confidentiality.           2 Preparing for Auction day A number of details should be attended to prior to the day of auction to overcome any areas of doubt before purchasing. :: Check all sales documentation relating to the property, as the Contract you will be asked to sign is a legally enforceable document. Contact your estate agent and ask for a copy of the Contract of Sale and Vendors Statement (Section 32 Statement) and check them carefully. :: Ask a solicitor to view this documentation for you prior to auction. :: Have a builder or architect view the property to report on its general condition and any major defects. :: Confirm the availability of suitable mortgage finance. Our sales representatives can assist by referring you to InHouse Financial Services who can discuss a range of highly competitive finance products. :: Understand the value of your current property. C+Weber can assist by providing you with a full marketing report on your current property prior to the day you are planning to bid. 3 Setting your limit   When setting a dollar limit on a property, start by answering the question - how much do I want this property? Think about what the property is worth to you and what you would pay so as not to miss the chance of owning it.   The true value of a property is represented by the best price a prudent buyer will be prepared to offer. Often buyers regret not buying a property because, at the time, they felt the price was too high. On a strong property market, some flexibility may be required on the question of price. Ask for advice from our salespeople who will be pleased to assist whether our company is involved in the sale or not. Alternatively, ask another reputable estate agent for advice. 4 Bidding with confidence Buyers often feel that they should hold off bidding until the end of an auction, however such an approach can be counter productive. Unless there is need for secrecy, bids should be made clearly and confidently. Any hesitation may signal to other bidders that your nearing your limit.   While it is common practise for an auctioneer to confer with the vendor/s during the auction; this is not essential. Sometimes an auctioneer will announce that the reserve price has been reached without needing to confer with the vendor/s. Either way, auctioneers are usually quite specific as to whether they are obtaining vendor instructions during the auction or whether these instructions have been set prior to the commencement of the auction. 5 The "Passed In" Auction   When a property is passed in at auction, this means that the vendor's reserve price has not been reached. In most cases the vendor/s, in consultation with the agents, will set an asking price immediately after a property has been passed in at auction.   It is important to note that when a property is passed in, the highest bidder at the auction will have the first right to negotiate a sale at the asking price. Properties are often sold this way. If the highest bidder fails to make an offer that is acceptable to the vendor within a few minutes after the auction, then the agents will be free to seek offers from any other parties - present or otherwise. If you are interested in buying a property at auction, you should be the highest bidder. This will enable you to purchase the property at auction or negotiate a purchase should the property be passed in. Back to top