Auction Bidding Agents in Melbourne
Auctions are designed to maximise competition between buyers, and deliver vendors the highest possible sale price. Too many bidders get emotional and lose sight of their intended budget. We’ve been to auctions where successful purchasers have looked horrified by what they’ve done!
As licensed agents with years of experience in auction bidding, we increase your chances of securing the property; we regularly save clients tens of thousands of dollars through smart tactics.
A Multi-Million Dollar Case Study
A client asked me to bid at auction for his dream family home. Listed at $1.9 – $2.1m, he was comfortable paying $2.24m. We talked through the strategy beforehand: Wait until it’s on the market (I knew the agent well and was confident of not missing out on post-auction negotiations); jump in once one or more bidders dropped out; bid in $10k increments only; raise the hand, bid loud and firm. On the market at $2.1m, the first bidder dropped out at $2.16m, we jumped in at $2.18m, and secured it at $2.22m. A professional bidder told the agent afterwards he stopped at $2.21m because he didn’t think we’d stop – little did he know!
Have questions? Some FAQs
We strive to be as transparent as possible in everything we do.
The vendor (seller) tells the auctioneer quietly before the auction the lowest price he/she will accept for the property. Any bidding below this ‘reserve’ amount won’t result in a sale – only bids above the reserve can secure the property.
If bidding stops before hitting the vendor’s reserve price (only the vendor and the auctioneer know what this reserve price is) then the property passes in. The auction is over, the property doesn’t sell, and the vendor will most likely list the property for sale with a fixed price early the next week.
A property cannot be sold at auction until bidding reaches the vendor’s reserve price. Once bidding hits the reserve price, the auctioneer will say that the property is on the market, meaning that the highest bidder from that point on will purchase the property. Any bidding before the reserve price is met doesn’t really count towards purchasing the property – it’s about ramping up the competition between bidders.
The vendor decides on a reserve price (the lowest he’ll sell for) prior to the auction. Once bidding hits that reserve price, the auctioneer will declare the property ‘on the market’ and the highest bidder from that point will purchase the property. If bidding doesn’t reach the reserve price, then the property is passed in, meaning it is not sold.
Auctions are designed to maximise the competition between buyers, and get the highest possible price for the vendor. When bidders get emotional, they’re likely to bid more than they intended to, and that’s when crazy prices can be achieved. Auctions are transparent, and a lot of vendors choose to sell through this method because of this (think about a deceased estate with multiple beneficiaries, for example).
It helps to have the biggest budget compared to other buyers. But, even if you do, other bidders can sometimes get caught up in the emotion and pay more than they originally intended. Try to bring down the competitive emotion if you can. Never look uncertain or indecisive. And beware, when you purchase a property at auction, it is an unconditional sale – you can’t negotiate things like finance approval, building inspections, etc after the purchase.