What to Expect When Attending an Auction
If you’ve never attended an auction before, you may be feeling a little overwhelmed and unsure of what to expect. Auctions can be exciting but also a bit intimidating if you don’t know the rules. Fear not! Here is a comprehensive guide on what to expect when attending an auction.
Registration and Bidding Participation
Before bidding at an auction, it is essential that you register your intention to participate in the auction with the vendor or their representative. This will usually involve signing a document agreeing to the terms of sale and providing identification such as your driver’s license or passport. This is generally done in the 30 minutes before the auction is due to commence. Once this is done, you will be given a bidding number or card which must be presented each time you bid. You are now ready to bid!
Auction Conducted by an Auctioneer
At an Auction, the auctioneer will conduct proceedings from start to finish. The auctioneer will begin by outlining the terms of sale and any special conditions which apply before commencing with the bidding process. The successful bidder will be determined by open outcry - meaning that bidders must raise their hands or call out bids during the entire process. It is important that all participants remain alert throughout the entire auction process so that they do not miss any important information being communicated by the auctioneer.
Increasing Your Bid Amounts
Bid increments are set amounts which increase each time someone makes a bid. These increments are predetermined prior to commencement of the auction and vary depending on how much has been offered for that item so far - for example, $500 would increase by $50 whereas $10,000 would increase by $1000 each time someone makes a bid. It is important to understand these increments so that you can make informed bids throughout proceedings without going above your budget limit for any particular item.
What Happens If You Win
If you are successful at the Auction, the agent will arrange for you to complete the front page of the contract for sale with your details and the agreed purchase price, you will be required to sign the contract, and you will be required to hand over a bank cheque representing the deposit payable.
If you did not come to the auction with a bank cheque ready in anticipation of winning, you will need to immediately arrange for the deposit to be paid into the vendor’s real estate agent’s trust account. Alternatively, if you did bring a bank cheque, but it does not reflect the complete amount of the deposit payable, then you will need to arrange for any shortfall due to be paid into the vendors estate agent’s trust account immediately.
The real estate agent will then date the contract with the auction date, and deliver your signed copy to the vendor’s solicitor, and the vendor’s signed copy to your solicitor. Your solicitor will then contact you regarding next steps or the conveyance process.
Attending auctions can be both exciting and nerve-wracking experiences but knowing what to expect will help ensure that your experience is as enjoyable as possible! By following these tips, we hope that you feel more prepared when attending your next Australian Auction and have greater chances of success when placing bids. Good luck!