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  1. #1
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    Default Bidding at auction tips

    Any tips for bidding at house actions?

    I don't have time to see many auctions before hand as I have 2 young ones and limited baby sitter (my mum and mil do enough during the week)

    Also how many times did you visit the house (open for inspections)

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    Default Bidding at auction tips

    Make sure you inform the agent you are interested so they keep you updated

    Visit every open house before the auction

    Ask the agent how many pre auction offers they have had, how many people have contracts and have done building/pest reports ( they don't have to tell you but some do!)

    I always get asked to bid on behalf of a lot of my clients/friends and I always open the bidding first at a reasonable price , bid loudly and fast ( make sure you 100% agree on your maximum so you don't have to stop and argue/chat during the auction!)

    People will tell you not to bid till the end, go slow etc but honestly on my experience it's not the best way, all your doing is revving up the other bidders , if you bid first and be loud, look confident and open at a good price then you will intimidate all the other buyers plus if you are sticking to a budget and it goes over your price at least you get it over with quickly!!
    Last edited by Elijahs Mum; 20-02-2013 at 15:00.

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    i would go to at least 2 opens and take someone knowledgeable with me the second time (friend, partner, parent etc ideally who has some building/handyman experience).

    definitely get a pest/building inspection done.

    Ask for a copy of the sale document (Section 32 i think they are called).

    I agree there is nothing wrong with opening the bidding. I'd usually hold back until they have declared the house as being on the market. If this doesn't happen though you want to want to be the final bidder so you have first negotiation rights. I would not get into a bidding war against "vendor bids". I'd just pull out if that was the case.

    stick to your budget. - there will always be another house around the corner

    good luck!!

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    I get my Dad to bid for me. He has clear instructions from me and he is not going to be emotionally involved in the process and bid over like I know I could.

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    Yeah I read to bid later not first.

    So if the auctioneer opens the auction at $440k, instead of putting my hand up at $445, do I yell out a higher price???

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    I was also told not bidding and it passes in, reduces the value!

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    Quote Originally Posted by singa06 View Post
    I was also told not bidding and it passes in, reduces the value!
    generally, yes. you wouldn't bid against yourself to increase prices would you. although if negotiations fail you risk losing the property and it would open back up as a private sale.

    The house we bought at auction passed in at $750k, the vendor wanted min$850k and we laughed. We found a middle ground and the house was ours.

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    I was also told not bidding and it passes in, reduces the value!

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    Default Bidding at auction tips

    Quote Originally Posted by singa06 View Post
    Yeah I read to bid later not first.

    So if the auctioneer opens the auction at $440k, instead of putting my hand up at $445, do I yell out a higher price???
    A good auctioneer should ask for bids in the lower end of what's it worth so if he yells out let's start at $440 , immediately yell out $440- some bidders try starting lower than this ( for what reason I've no idea as all that does is builds up a strong momentum )

    You want to look like you are a strong confident bidder , if it does not reach reserve then you must be the highest bidder to have the first right to negotiate ( this just means once it's past in, they tell you the reserve first and you can try negotiate, then they can then go to the other bidders if you dont agree on a price)

    In NSW the vendor only gets the right to 1 bid which the auctioneer will announce ( usual their lowest take price) I usually bid $1000 over that

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    Thanks!!

    Ps, I've asked him if I could buy before auction, but apparently not because a few people are interested :-(
    He said maybe if I offer in the higher end (it's advertised $440-480k) so I assume their reserve is higher than thant or Inbetween??
    Last edited by 2BlueBirds; 20-02-2013 at 17:26.


 

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