Auction Bidding Service

The Auction Bidding Package is a specialized service for buyers who have identified a property they wish to purchase at auction but want expert representation during the auction process. Buying at auction can be stressful, fast-paced, and emotionally charged, so many buyers opt for professional assistance to ensure they don’t overpay or make costly mistakes. I represent you the buyer at auctions, providing pre-auction advice, bidding strategies, and bidding on behalf of the buyer.

What the Auction Bidding Package Includes:

1. Initial Consultation

• • What happens:
    The process begins with a detailed consultation between the buyer and the agent. Key topics covered include:
  • Auction Property Details: Information about the property the buyer intends to bid on, including the auction date, location, and expected price range.
  • Budget and Maximum Bid: The buyer sets a maximum bidding limit based on their budget and financial pre-approval. This is the maximum amount they are willing to pay.
  • Auction Strategy Preferences: Discussion of how the buyer wants the agent to approach the auction (e.g., aggressive bidding, conservative approach).
  • Pre-Auction Due Diligence: If the buyer hasn’t already done so, the agent may recommend obtaining a building and pest inspection or reviewing the Contract of Sale to ensure there are no issues that could affect the property’s value or desirability.

Goal:
To ensure the agent has a full understanding of the buyer’s goals, budget, and strategy before the auction.

2. Pre-Auction Advice and Strategy

• • What happens:
    The agent develops a customized bidding strategy based on the buyer’s goals, the property’s market value, and the expected competition at the auction. This includes:
  • Market Analysis: The agent provides the buyer with a Comparative Market Analysis (CMA), detailing recent sales of similar properties in the area and current market conditions. This helps the buyer set a realistic maximum bid.
  • Bid Strategy: The agent advises the buyer on how to approach the auction, including:
  • When to enter the bidding (early vs. late)
  • Increment size (small or large bid increases)
  • Reading the auctioneer and other bidders’ behavior
  • Setting a Maximum Price: The agent ensures that a firm maximum bid limit is agreed upon, which the agent will not exceed, preventing emotional bidding that can result in overpaying.
  • Pre-Auction Offers: If the buyer prefers, the agent can advise on whether to submit a pre-auction offer in an attempt to secure the property before auction day, possibly avoiding competition.

Goal:
To set a clear, realistic auction strategy that increases the buyer’s chances of success while staying within budget.

3. Auction Day Representation

• • What happens:
    On the day of the auction, the agent attends the auction on behalf of the buyer and handles all the bidding. Key aspects of this include:
  • Professional Bidding: The agent bids on behalf of the buyer, sticking to the agreed-upon strategy and maximum bid limit. They use expert tactics to increase the chances of winning, such as:
  • Timing bids to disrupt other bidders
  • Starting with smaller or larger increments based on the auctioneer’s pace and competitors
  • Avoiding emotional reactions that can lead to overbidding
  • Real-Time Communication (if needed): In some cases, the agent may communicate with the buyer during the auction if unexpected situations arise, but they will never exceed the pre-agreed maximum bid without explicit permission.

Goal:
To provide calm, professional representation at the auction, helping the buyer avoid emotional or impulsive decisions and increasing the likelihood of securing the property within the buyer’s budget.

4. Post-Auction Support

• • What happens:
    If the buyer successfully wins the auction, the agent provides guidance on the next steps. This includes:
  • Contract Signing: Assisting the buyer with signing the Contract of Sale immediately after the auction (which is typically required for auction purchases).
  • Deposit Payment: Ensuring that the buyer knows how and when to pay the deposit, which is usually due on the day of the auction (typically 5-10% of the purchase price).
  • Settlement Guidance: Providing advice on the settlement process and recommending conveyancers or legal professionals if the buyer does not already have one.

Goal:
To make sure the buyer knows exactly what to do after winning the auction and to ensure the post-auction steps go smoothly.