Buying at Auction

Auctions have become a widely accepted method for selling real estate in Townsville so chances are if you are in the market to buy real estate in Townsville you could be faced with bidding at an auction. Rest assured the team at Keyes & Co. Property are well versed in this process and offer purchasers a relaxed, non-intimidating style at all of our auctions. So if you are going to attend an auction to bid for a property, there are some routine things you need to do on the day, before the auction begins which include

  • If at all possible attend an auction or two beforehand, so you can experience what goes on and get a feel for the process when you are not a buyer. The unknown can create anxiety and fear so by attending a few auctions as a spectator you will have removed a lot of anxiety.
  • Set a limit that you are comfortable with and discuss this limit with your family/partner or mortgage broker so that you have your own support crew that can advise you. Understand what the implications are if you go over that limit and be able to attach a number to that in terms of a loan repayment even if it is by an amount as small as $1,000 in bidding. It may be that last $1,000 bid that secures you the property on the night and gets you into the property market before it becomes out of reach, so knowing your boundaries and what that means to your budget is very important.
  • Have your finance pre-approved beforehand and make sure you have deposits arranged well in advance so that if you are the winning bidder you are not putting yourself in breach of contract by not being able to pay the deposit. If you require terms different than those being offered then advise your agent and they will seek the seller’s instructions on those changes.
  • Be early. Allow plenty of time for traffic delays etc. so that you can arrive 10-15 minutes prior to commencement. That way you are not flustered and are thinking clearly and have plenty of time to check with an agent or auctioneer if there have been any last minute changes to the contract conditions. Position yourself so that you have a good view of the other bidders and most importantly where you will be seen and heard by the auctioneer.
  • Opinions vary as to the ‘best’ bidding strategy, but the key is to stick with what is most comfortable for you. Some people prefer to start bidding early and to make large bids to scare rival bidders. Others hold back for a while and trump competition at the last minute. Either way, bid when you feel ready and bid with confidence and without emotion. Bidders are permitted to ask the auctioneer to accept a lower bid increment, if they feel it is too high. When the auctioneer says that the property is ‘on the market’, it means that the reserve – the seller’s minimum accepted price – has been reached and will be sold. Some wait until this point to place their bid. The most important thing as a buyer – know that you have to bid in order to buy the property, so don’t be afraid to get things started!
  • If you are not comfortable bidding yourself, engage a friend or trusted colleague to bid on your behalf. This authority must be provided to the auctioneer in writing prior to the auction commencing or alternatively you can arrange to bid by telephone via one of our agents and again we must have your written authority prior to the auction.
  • Be prepared – make sure if you haven’t registered to bid prior to the day that you arrive a few minutes early and get the registration process out of the way, it only takes a minute but again you don’t want to be doing this mid-auction if you can avoid it as it may throw you off your game. Don’t forget to bring your photo identification you will need this in order to register.
  • Our agents will be on hand to help you at all times throughout the auction and they won’t be afraid to call out your bid if you wish to do it that way. The auctioneer will look at you for a confirmation and all you will have to do is acknowledge that by showing your number and nodding in acceptance with the auctioneer for it to be legally binding.
  • Check in the lead up to the auction what the terms and conditions of sale will be. Confirm deposit amounts and settlement periods, and do not be afraid to ask for va