Attending an auction for the first time can be easier if you understand the process. The bidding that takes place are on an unconditional nature. Meaning you have to check everything you want to about the property before the auction day.
Video has a one extra tip at the end but basically the main things you have to understand are:
The Deposit
You are required to usually pay a ten percent deposit if you win. This can be lower but you must ensure that the agent is happy with the figure before the auction. Sometimes this is important if you don’t have the full deposit available on the day.
Also you can make a bank transfer after you win, you do not need a bank cheque.
The Reserve
The reserve is a figure that the bidding at the auction must reach before the seller is inclined to sell. This figure is hidden from the public until the bidding gets higher. You will hear the auctioneer mention something along the lines of “the property is now on the market” or “the reserve has been met”, indicating that the highest bid will take the property.
If the bidders don’t get high enough to meet the reserve the property can be passed in. Basically this means that the property is available to be bought by negotiation. The highest bidder get the first chance, however you can sometimes muscle your way in if your price might be right. Buying by negotiation means you can put conditions on your offer.
