An Auction is rather like a Shakespearean Play, with a well defined Stage and a serious of structured Acts.
Anybody who has bid at an Auction will tell you about the adrenalin that kicks in once the bidding starts.
If you are a serious contender, but new to bidding, then bidding at the right time is especially important.
After all, no buyer actually wants to drive the price up!
Selling at Auction is a stressful process for both seller and buyer so preparation is key.
Setting the Stage
If you are bidding, find a place where you can see the whole group, as well as have a straight line of sight to the Auctioneer.
Make sure you have something like a Property Promo brochure in your hand ready to roll up and use as your baton when the serious bidding starts.
The Auctioneer begins..
The Auctioneer will usually talk about the property, mention it’s attributes and desirability, and will outline the terms and conditions of the Auction.
They will also outline how they intend to take bids in dollar value.
Act One – the Auction begins
The Auctioneer will ask : “Would someone like to start the bidding ?
A canny bidder will absolutely not take the bait, but would calmly roll the brochure up ready for serious bidding when the time is right.
If nobody takes the bait and places the first bid, the Auctioneer will start the Auction with a “vendors bid”
This is literally the current owners of the property bidding on their own home with the intent of moving the price past their reserve price.
There may be several ‘Vendor’s Bids’ placed before bidding actually reaches the Reserve Price.
It is important to note that under the REA Act 2008, Auctioneers must identify these Vendor’s Bids as being a “Vendor’s Bid”.
Read more here
You’ will know when the Reserve is met – as the Auctioneer will say something like …
“We are on the market …” or “We are selling today …” or “‘Who’s going to own this beautiful home today ?…”
This signals the beginning of Act Two and the exciting part.
Act Two- the Auction continues
As a buyer, ideally you would want the ‘actual auction’ to move quite slowly, yet a vendor or seller, obviously, you would like it to go quickly.
What you are actually wanting to hear as a potential successful bidder is the Auctioneer shouting “Going Once …
Listen carefully for the cue…. For seasoned successful bidders, this is the signal to put their hand holding the rolled up brochure into the air, and place their first bid.
Act Three- The Auction sells
This is when the actual sale will happen !
You might notice that a whole new group of bidders’ enter the bidding war.
Once again you are waiting for it to slow down.
So listen for the Auctioneer shouting “ Going Once …
And get your hand & brochure into the air … and absolutely without any hesitation bid and display confidence that this house will be your new home.
Your goal as a successful bidder is to have your hand in the air for the “Going Once … Going Twice … Sold !”
Remember that a decade in any home will totally remove any feeling of ‘paying to much’
Note: If a property does not sell at Auction and is passed in, the sellers can sell the property for a price acceptable to them with terms and conditions that they agree upon.
