Get in early
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.