BUYING AT AUCTION Before you bid at auction you must understand the process and satisfy yourself about all details relating to the property. If you are the highest bidder and your bid is accepted you are obliged to purchase the property. If buying at auction you should have: • Decided on a definite upper limit you are prepared to pay • Conducted inspections • Had legal documents checked by your solicitor/conveyancer • Had finance pre-approved
BIDDING AT AUCTION In some states prospective purchasers who wish to bid at auction for residential and rural property must register by giving particulars to the selling agent before they are permitted to bid. Bidders are issued with a bidder's number which is displayed when making a bid.
The vendor or the auctioneer on the vendor's behalf may make one bid which must be announced during the auction. This is called a vendor bid.
If the property fails to reach the reserve price it is passed in. As a courtesy, the highest bidder is usually given the first opportunity to negotiate further with the vendor after the auction. If the property is not purchased, it will be placed back on the market for sale by private treaty.