Mobiles are ubiquitous in modern life, so it’s not unusual to see someone bidding at an auction on one.
But how exactly do would-be buyers bid over the phone?
David Holmes, LJ Hooker’s national auction manager, says while it’s “always preferable” to bid at auctions in person, if it’s impossible due to geography, work commitments or even nerves, phone bidding is a viable alternative.
Bidding over the phone is now commonplace. Picture: Getty
He says the practice is now commonplace in the industry, but not necessarily growing in popularity.
Holmes explains the ins and outs of bidding over the blower.
How do you bid via phone?
First, check it’s even an option.
Before auction day, ensure the vendor, agent and auctioneer are comfortable with taking bids over the phone, he says, as it’s not a given it’s available.
Next, think about paperwork.
In most states and territories, all bidders must register and extra paperwork may be required for phone bidders, Holmes says.
“We ask bidders to sign a form nominating a stand-in to bid on their behalf prior to the auction, normally it’s a trusted friend,” he says.
It’s also possible to nominate an agent, he adds.
When it comes to the mechanics of bidding, a phone bidder is treated like any other, Holmes explains.
Bidding by phone best suits buyers who are:
- Uncomfortable with public bidding
- Well-known and seeking anonymity
- Unable to attend in person
- Unwell or caring for others
- Not local residents
- Working with buyers agents.
What are the upsides of bidding for a property via phone?
Holmes says the person at the auction should clearly and consistently explain what’s happening with bidding to the buyer on the other end.
“There can be noise in the background, environmental elements like wind can come into play, it may be a vendor bid the person on the other end hears, not a bid from the crowd and so on, so it’s vital to communicate clearly,” Holmes says.
“You really need to be confident in the person who is doing the bidding for you. It’s a huge responsibility,” he says.
For many shy buyers the nature of phone bidding may well appear to be less daunting, according to buyers’ advocate Cate Bakos.
“The mere idea of an auctioneer with a gavel screaming at you in a crowd makes many buyers feel weak at the knees. There is a comfort for many in the anonymity of phone bidding,” Bakos says.
And the downsides?
The downside to phone bidding is not being able to read the competition’s body language and the real-time dynamics of the auction, which can be vital to securing a property at auction, Holmes says.
The fact that buyers bidding over the phone cannot see their rivals can work against them, Bakos agrees.
“There is more to bidding than just increasing the last bid. Reading the buyers, changing your (bid) increments, altering the volume of your voice and the pace of your next bid and being able to reposition yourself to see eye to eye with your rival bidder are some of the tactics only a person who was physically there could exercise.
“It is the correct combination of these moves which can make the difference between a rival bidder giving up and a rival bidder stretching their limit.”
Tips for bidding at auction via phone
- Assess the impartiality of the person holding the phone and bidding for you/li>
- Conduct robust due diligence pre-auction so you know your property’s value
- Set a bidding limit – and stick to it
- Make sure you trust the person bidding for you.
