bidding at auction

Wythes Real Estate are here to assist you when bidding at auction. We have provided some information to make this exciting process as easy as possible.

You need to prepare before buying at auction. It is a good idea to go to a few auctions first to see how they work. The terms of a residential auction sale usually require the buyer to bid on an unconditional basis. This means the contract of sale is not subject to any conditions, such as finance approval or the completion of another sale. Ask the real estate agent for a copy of the terms and conditions before the auction date. Remember when buying at auction there is no cooling-off period. You need to view the property and do all the necessary checks before bidding. Getting an independent professional valuation and building inspection is also a good idea.

before the auction

Before the auction, Wythes Real Estate recommends you:

  • inspect the property
  • do all the necessary checks such as a title search and building and pest inspection
  • arrange your finance
  • get an independent professional valuation of the property
  • do your own research of the market
  • ask the agent how much is needed for the deposit and how you need to pay it on the day (a personal cheque, bank cheque or deposit bond is usually okay)
  • get a copy of the contract and think about getting legal advice about the terms and conditions of the auction to ensure you understand what you will be bound by if you are the successful bidder

on auction day

The terms and conditions should be read out to prospective bidders before the auction starts.

Ask any questions about the property before the bidding starts.

If you want to bid, register with Wythes Real Estate or the auctioneer before the auction starts. They will require your drivers licence. The auctioneer will give you a unique identifier such as a numbered paddle. Only registered bidders can bid on the day.

If you are the successful bidder, you must sign a contract immediately. There are serious legal ramifications if you cannot settle the sale on time.

If the property is not sold at auction you may ask Wythes Real Estate to put a written offer to the vendor of the property for their consideration.

understanding vendor bids

In Queensland, auctioneers are allowed to accept ‘vendor’ (seller) bids up to the reserve price. The property is then ‘on the market’. Vendor bids must be announced in the conditions of sale at the beginning of the auction.

It is illegal for auctioneers to engage in dummy bidding or take false bids once the property is on the market. Any bid where there is no genuine bidder is a false bid.

The auctioneer reserves the right to bid on behalf of, or accept, bids from the owners of the property.

Wythes Real Estate strives to give the best assistance and information to any purchasers wishing to bid at auction.