Get in early

Herald Sun - Property - - Streetscapes -

UC­TION clear­ance rates are at lev­els not seen since the spring of 2007, so some auc­tion tips may be timely.

Ar­rive with enough time to walk through the prop­erty one last time and to check the con­tract, ven­dor’s state­ment, in­for­ma­tion about auc­tions and the auc­tion rules, all of which will be on dis­play.

Pay par­tic­u­lar at­ten­tion to the rules. They tell you how the auc­tion will be con­ducted.

One rule that’s es­pe­cially im­por­tant is about the re­serve not be­ing reached and the prop­erty be­ing passed in.

If the auc­tion­eer passes the prop­erty in be­low the re­serve, the owner will ne­go­ti­ate first with the high­est bid­der.

If you have taken part in the bid­ding or have been sit­ting back watch­ing how it’s pro­gress­ing, and the auc­tion­eer an­nounces the prop­erty is go­ing to be passed in, it’s a good strat­egy at this point to bid to get the right to ne­go­ti­ate first with the owner.

Se­cur­ing the right to ne­go­ti­ate first doesn’t cost any­thing and you have cre­ated a con­tract be­tween your­self and the owner en­ti­tling you to ne­go­ti­ate be­fore any­one else.

Your con­tract ex­ists the mo­ment the auc­tion­eer ends the auc­tion by pass­ing the prop­erty in.

Af­ter the prop­erty is passed in, it’s too late to shout out a bid to try to get to the front of the ne­go­ti­at­ing queue. The auc­tion is over. You have missed out on se­cur­ing the right to ne­go­ti­ate first.

The auc­tion­eer can’t re­open the auc­tion to ac­com­mo­date your late bid and over­ride the right that some­one else has se­cured ahead of you.

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