The ACTON Group has experienced another year of strong growth in auctions, with more and more sellers embracing the process.
“We are definitely seeing more people choose the auction process to sell their property and greater crowds at auctions,” said ACTON Auctioneer Boyd Fraser. “However, while auctions are gaining acceptance in the market place, they can still seem a little daunting, particularly if it is your first experience buying at auction.”
A survey by St George Bank found bidding at auction terrified some buyers so much they were missing out on their dream home. It found more than half of those in the market don’t know how to handle bidding at auction and felt they had missed out on the home they wanted as a result. Bidding was seen as a cause of real anxiety, causing loss of sleep, with the whole house hunting process affecting work productively and relationships.
“It doesn’t have to a terrifying event,” says Mr Fraser. “We are here to help, so if you are nervous speak to the selling agent or the auctioneer about the process; ask what you need to do to make a bid and what will happen at the auction. You might even be able to have an agent with you and bidding for you if you wish.
“It helps to be prepared. Make sure you are organised before the auction – if you are going to bid you must have your finance approved. The majority of auctions require bidders to be ‘cash’ buyers and not subject to finance or subject to sale. Then set your budget and know how high you are willing to go.
“Request a copy of the contract from the selling agent prior to auction. On the day be prepared to pay a deposit at the signing of the contract.”
If you are genuinely interested in the property Mr Fraser says it pays to bid. “If the property is passed in below the reserve price the highest bidder will have the first right to buy. If the property is passed in below the reserve price on a vendor bid no buyer has the first right to buy and all potential buyers are treated on an equal basis.
“If you would like to buy the home, but won’t be in a position to make a bid, you should still attend the auction. If the property is passed in on a vendor bid you may have the chance to make an offer immediately after the auction.”