{"id":6443,"date":"2017-09-29T04:00:18","date_gmt":"2017-09-29T04:00:18","guid":{"rendered":"https:\/\/amazingproperty.com.ng\/blog\/what-do-i-need-to-know-on-auction-day\/"},"modified":"2018-04-14T22:56:49","modified_gmt":"2018-04-14T22:56:49","slug":"what-do-i-need-to-know-on-auction-day","status":"publish","type":"post","link":"https:\/\/amazingproperty.com.ng\/blog\/what-do-i-need-to-know-on-auction-day\/","title":{"rendered":"What do I need to know on auction day?"},"content":{"rendered":"

 <\/p>\n

\n

Attending your first auction as a potential buyer can be a little overwhelming.<\/strong><\/p>\n

There\u2019s a lot of money riding on the result and you don\u2019t want to be caught in an uncomfortable position because you\u2019re not sure of the rules and procedures that govern auction day.<\/p>\n

Here are the important things you need to be across.<\/p>\n

Know the rules<\/h2>\n
\n

 <\/p>\n

You need to be aware of the rules before the auction<\/p>\n<\/div>\n

As a potential bidder and buyer at an auction, it\u2019s critical that you\u2019re well versed on the rules.<\/p>\n

Auctioneers will always read the terms under which the auction will be conducted, prior to taking bids, but good luck trying to remember all of them the first time you hear them. So do your homework beforehand.<\/p>\n

Preparing for auction day:<\/i><\/b><\/span><\/p>\n

Managing director and auctioneer at Jellis Craig\u2019s Armadale branch, Andrew McCann, says that in particular, people need to be aware of the implications if a property is below, or has moved past, its reserve price.<\/p>\n

\u201cI think that the important thing is to understand the actual rules for the auction itself and the nature of whether you\u2019re bidding for the property, or the right to negotiate below the reserve price,\u201d he says.<\/p>\n

\u201cOnce the reserve price has been reached and announced, the buyer should understand that any bid from that point on means ownership of the property. Don\u2019t be caught out holding back and allowing the property to be sold to someone else because you haven\u2019t quite understood the mechanics of the decision and the language around being \u2018on the market\u2019, or \u2018past reserve\u2019, \u2018for unreserved sale\u2019, or \u2018playing for keeps\u2019, which are all terms that auctioneers can use.\u201d<\/p>\n

Know the process<\/h2>\n

If a property fails to meet its reserve price and is passed in, that doesn\u2019t mean it won\u2019t be sold.<\/p>\n

But if you want the first opportunity to negotiate with the vendor, you need to ensure you\u2019re the highest bidder.<\/p>\n

How to negotiate a property price:<\/strong><\/em><\/p>\n

\u201cIf an auction starts and the vendor\u2019s reserve is $1.2 million, the auction starts at $1 million and two people fight it out and it gets to $1.1 million and then stops, the highest bidder won\u2019t be buying the property at that point in time. But under the guidelines the highest bidder gets the first chance to negotiate with the vendors at their reserve price. The negotiation will be handled by the agent,\u201d McCann says.<\/p>\n

Should the highest bidder reject the vendor\u2019s price after the auction, they lose the exclusive right to negotiate, and other buyers may become involved.<\/p>\n

Do you need to register?<\/h2>\n

The legislation regarding whether buyers are required to register before making a bid varies from state to state.<\/p>\n

In Victoria and Western Australia, there\u2019s no requirement for you to make yourself known to the auctioneers before sticking your hand in the air, while in New South Wales, Queensland and South Australia, legally you need to register beforehand in order to be able to bid.<\/p>\n

You\u2019ll need your deposit<\/h2>\n

McCann points out that should you be the successful bidder, you must pay the required deposit then and there.<\/p>\n

\u201cYou need to be aware of that the fact that if you are looking to bid at an auction, you have a legal obligation to pay a deposit for the home, and more often than not that deposit is 10%,\u201d he says.<\/p>\n

\u201cThere can be times when buyers turn up without a cheque book or without an ability to make that cash transfer, and that does put them at risk of contracting a sale outside of the terms and conditions and can put their sale at threat. Being prepared with your deposit terms is a really important thing.\u201d<\/p>\n

\n

\"writing<\/p>\n

If you\u2019re the successful bidder, you must pay the required deposit then and there. Picture: Getty<\/p>\n<\/div>\n

Stick to your strategy and be in it to win it<\/h2>\n

McCann says while each bidder will have their own auction strategy, auctioneers are more likely to engage with and reward you later in the auction if you\u2019re clearly involved in the bidding.<\/p>\n

Look up auction results in your area.<\/strong><\/em><\/p>\n

\u201cI always encourage people that if you\u2019re interested, it\u2019s really important that you do bid for a property at auction,\u201d he says.<\/p>\n

\u201cBeing a bidder and putting your hand up at a level that you\u2019re comfortable at is a really sensible strategy, and it\u2019s an important one because more often than not an agent will reward and support the people that are involving themselves in the auction. It gives the vendor confidence that there\u2019s interest and that there\u2019s a point at which they can negotiate from.\u201d<\/p>\n

Mitch and Mandy share their auction strategies:<\/strong><\/em><\/p>\n

 <\/p>\n<\/div>\n

Realestate au <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

  Attending your first auction as a potential buyer can be a little overwhelming. There\u2019s a … What do I need to know on auction day?<\/span>Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":6444,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"advanced_seo_description":"","jetpack_seo_html_title":"","jetpack_seo_noindex":false,"jetpack_seo_schema_type":"","_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[4],"tags":[695,4751,4811,1403,12908,543,1007,41,818,15282,17],"class_list":["post-6443","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-opportunities-in-new-markets","tag-agent","tag-amazing","tag-an-agent","tag-buy","tag-home","tag-home-buying-guide","tag-owners","tag-property","tag-real","tag-ross","tag-vendor"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/09\/auction_sold_getty_a.jpg?fit=2000%2C1500&ssl=1","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":5887,"url":"https:\/\/amazingproperty.com.ng\/blog\/auction-day-tips-for-sellers\/","url_meta":{"origin":6443,"position":0},"title":"Auction day tips for sellers","author":"Amazing Property","date":"August 25, 2017","format":false,"excerpt":"On TV, auctions look simple. 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