Bidding at Auction

Basically it’s a bid that is not a real bid. You don’t have to concern yourself with ’Dummy Bids’ as they are not permitted at our auctions and you can rest assured that the only bids received at our auctions are genuine.

An auctioneer does have the right to place bids on behalf of the seller. Any vendor or sellers bid will be clearly nominated by the auctioneer and will only occur at a level below the reserve price.

It is the price a seller agrees to sell his property at. Basically once the reserve price has been achieved the property will be sold.

Once a property has been declared ’On the market’ the highest bidder will be the purchaser unless someone else places a higher bid before the auctioneer calls ‘sold’. If however, the bidding does not reach the ‘reserve price’ the property will then be passed in. The open competition of the auction is then lost and it will be declared that the highest bidder will have the first right to negotiate with the seller at the reserve price. You must be the highest bidder to ensure that you have this right as it places you in the ’Drivers Seat’.

You should attend as many auctions as possible to get the feel of how it all works. Auctions can be nerve racking but really there is nothing to be afraid of. In fact they can be quite entertaining and also helpful in showing you how its all done for when its your turn to buy at auction. Become an auctioneer judge so when you want your property auctioned you know who to select to handle your sale.

Do your research, check what comparable properties are selling for and have a builder or pest expert look at the property to satisfy any concerns you might have. Check with the local council, main roads, etc. to ensure there are no surprises in regards to changes affecting the property.

Don’t blow your budget. Work out what the property is worth to you and don’t go beyond it. It is as simple as that.

Check the paperwork, check the terms and conditions, check the title, ask questions and be sure you are absolutely clear on what you are buying.

Its not a bad idea to call for help and have a more experienced person bid on your behalf. You must of course ensure that, that person is 100% clear about your instructions otherwise things could get messy.

Make sure the auctioneer understands that you are bidding for the property. Bid early, clearly and confidently and avoid sign language that may be confused or misunderstood.

If the bidding is increasing in larger denominations that you are comfortable with, consider offering a lower denomination as your bid. The auctioneer does have the right to refuse it, but there is absolutely no harm in trying.

On the other hand, don’t be afraid to try and increase the bidding with a ’knock out’ bid if your competition is showing signs of slowing down. This can often throw doubt into the mind of the other bidders and get them to stop even though they have not yet reached their limit.

Good luck in your bidding and remember, the staff of De Freitas and Ryan are happy to assist you during our auctions should you need it. [Feel free to ask at any time]