RWTE GUIDE TO BUYING AT AUCTION

Success Tips for Auction Day

Auction day can be a nerve wracking day for all involved, but remember that the agent and auctioneer are there to assist you in your efforts to purchase and can often be your greatest allies on the day We’ve listed a few tips that may help you secure the property

WORK WITH THE AUCTIONEER

Although the auctioneer on the day is employed by the seller, ultimately they want to achieve the same outcome you do – a sale Ignoring suggested increments, & continually questioning if a property is “on the market” are not helpful to establishing a working relationship between both parties You are welcome to suggest any bid or amount you like, but remember the auctioneer may refuse a bid if it is not deemed in the best interest of the seller

VENDOR BID

The auctioneer is legally allowed to make bids on the sellers behalf A vendor bid must be disclosed by the auctioneer, who will use the words “vendor or seller” bid It is not the reserve price and indicates a price at which the vendor will not accept A vendor or seller bid is used in different circumstances to either start the bidding, increase the bid to a level closer to what the vendors will make in buyer-centric

Vendor bids are helpful because it gives you a better idea of what number it’s going to take to buy the property

BID WITH CONFIDENCE

The wait and see strategy is a popular one amongst purchasers but ultimately does little towards achieving a purchase Statistics show however that 68% of bidders who secure the first bid end up being the succssful buyer It is the bidder who bids with confidence and without hesitation that in most cases controls the flow of the auction You are much better to set the tone and show your competition that you intend to buy, then sit back and potentially be on the back foot

INCREASE YOUR OWN BID

Why must an agent or auctioneer ask you to increase your own bid? This is a common occurrence in today’s market so don’t feel uncomfortable about it. At some point in the auction, the estate agent or auctioneer may come up to you and ask you to increase your own bid. This may occur as your current bid may not be at a price the vendor will accept. Therefore you may need to increase your own bid if you wish to purchase the property.

WHAT HAPPENS IF THE PROPERTY IS PASSED IN?

Most auctions have conditional buyers (buyers that can’t bid under auction terms and conditions) waiting and hoping that the property passes in Should the property pass in, everyone will have equal opportunity to submit their offer If you can bid under auction terms and conditions, give it your best shot at the auction as it is the most transparent way to buy and, in most cases, less competitive

Registering for an Online Auction

Enjoy a simple & stress-free registration process with our interactive online registration form Simply scan the QR code or insert the link into your web browser to begin your registration process

REGISTER TO BID

Scan Here

It is a great idea you discuss your bidding strategy prior to Auction so that your agent is on the sam

SIMPLY SCAN THE QR CODE TO REGISTER OR HEAD TO RWTE.AUCTION/BIDDERSREGISTRATION

What happens next Post registration

Our Online Auctions give our buyers the advantage of being able to bid from anywhere in the world This is done by assigning you one of our friendly property consultants, who will bid on your behalf via telephone on Auction night

Once you have successfully submitted your registration, your assigned property consultant will be in touch to introduce themselves and answer any questions you may have This agent will be your point of contact herein

It is a great idea you discuss your bidding strategy prior to Auction so that your agent is on the same page.

KEEP IN MIND

Every individual who would like to appear on the contract of sale will need to register

If you are successful, the name you register with will be what will be placed on the contract of sale

Please be sure to include middle names (if applicable)

If you would like to purchase the property in a company name, simply insert the company name instead of your first & last name when prompted on your registration form

Please include a copy of BOTH SIDES of your ID & ensure the address on your ID matches the address you provide

It is imperative that you provide details of your selected solicitor where prompted as we will need to write this on the contract of sale. Please refrain from submitting your registration until you have your solicitors details.

The registration form MUST be signed by those registering. If you submit an unsigned registration form you will be asked to resubmit the form. Any bidder who has an unsigned registration form on auction night will not be allowed to bid.

If for any reason our team requests extra information from you, the sales agent will reach out to you via phone or email. Please ensure you are prompt with your response.

BUYING AT AUCTION

Scan to watch

It is a great idea you discuss your bidding strategy prior to Auction so that your agent is on the sam

WITH RAY WHITE TUGUN ELANORA PRINCIPAL, JOHN PARKES & RAY WHITE CHIEF AUCTIONEER, GAVIN CROFT

What to expect on

Auction Day

It’s hammer time! The convenience of bidding in the comfort of your own home, surrounded and supported by whoever you like, has been a game-changer for our buyers! Whether you're a local, interstate or international buyer, our Online Auctions provide more opportunity for people to purchase their dream home

LIVESTREAMING

Live streaming an Auction is a wonderfully simple and user-friendly experience. First, you will need to make sure you have the Auction bidding link ready to go on your laptop/computer/ipad. Please see the Auction bidding link below:

rwte.auction/LIVE

HOW DO I PLACE A BID?

Prior to the auction, you would have been contacted via phone by one of our friendly property consultants This consultant has been assigned to work for you at the auction and bid on your behalf

When the Auction starts, your assigned property consultant will call you and keep you on the line As you watch the Auction live on your device, you will need to be on the phone with this agent at the same time. When you wish to make a bid, tell your agent, and he/she will place the bid on your behalf.

WHAT HAPPENS WHEN YOU WIN

If you are the highest bidder and the successful buyer, the Auctioneer will sign the Contract of Sale on your behalf. RWTE will then provide the trust account details so you can pay the deposit in accordance with the contract terms. A receipt of payment must be emailed to courtney.tymon@raywhite.com & caroline.tymon@raywhite.com by 11pm that day.

This Bidding Link will not go live until Auction Day We recommend you click on this 15 minutes prior to the Auction commencing to make sure you are logged in and ready

Then, simply register your name & email and click the submit button You will be redirected to our live-stream network

Please do not watch the Auction on your phone You will need to leave your phone free for possible conversations with the Auctioneer or Agent throughout.

There is a 5-10 second delay in the live stream. We recommend muting your live-stream device to avoid confusion when bidding on the phone with our agents.

SOME BUYERS HAVE SECURED EXCELLENT VALUE AT AUCTION SIMPLY BECAUSE A CASH UNCONDITIONAL CONTRACT WAS A HIGH PRIORITY FOR THE SELLER WHO CHOSE TO TAKE THE HIGHEST OFER UNDER AUCTION CONDITIONS RATHER THAN CONSIDER CONDITIONAL OFFERS AFTERWARDS.

Frequently Asked Questions

CAN I BUY BEFORE AUCTION DAY?

Absolutely In fact up to 50% of Auction properties are sold prior to auction day However, the acceptance of offers prior to auction day is a decision made entirely by the vendor

If you wish to submit an offer prior to auction please ensure you have undertaken all research and your due diligence as your best chance to have your offer accepted is to do so under auction conditions

WHAT IF MY OFFER IS NOT ACCEPTED PRIOR TO AUCTION?

HAVE I WASTED MY TIME?

Definitely not, it may be that the vendor’s price expectation sits above the market’s expectation. Or perhaps your offer is under-estimating the value of the property. Regardless, after the vendor has had the opportunity to see the full marketing campaign and see the interest in the property on auction day, both parties will often re-evaluate their expectation

CAN I REQUEST ALTERNATE TERMS AND CONDITIONS OF THE AUCTION?

If you wish to alter the contracts terms of settlement, deposit, inclusions or conditions, speak to the Listing Agent Ensure you do not wait until Auction Day as this may be too late, these conditions must be agreed upon by the vendor prior to you commencing bidding

Although you are at liberty to request variations you may not always get your way especially if there is strong interest in the property. If your conditions are not agreed upon prior to auction do not be deterred. If the property is not sold at auction the vendor is often more receptive to conditional offers subsequent to the day.

Benefits of buying at Auction

MAY ENCOUNTER LESS COMPETITION FOR THE PROPERTY

If a buyer is in a position to purchase at auction they may actually find they have less competition than if they seek to purchase a priced property This is because some buyers are not in a position to buy under the cash-unconditional terms of an auction If a property “passes in” at auction (does not sell), often several buyers come forward afterwards seeking to buy with a range of special conditions attached to their offer (finance approval, building and pest inspections) etc

This then places buyers in competition with each other post-auction Some buyers have secured excellent value at auction simply because a cash-unconditional contract was a high priority for the seller who chose to take the highest offer under auction conditions rather than consider conditional offers afterwards

COMPETITION AT AN AUCTION IS TRANSPARENT

With an auction offers and negotiation are public - out in the open With a private treaty sale (sale by price), if two or more buyers want the same property at the same time, it is standard practice that each buyer will not be aware of the offer being made by other buyers This means all competing buyers are “shooting in the dark”

At auction all offers are made publicly (in the form of bids) and a buyer can choose to increase their offer only as much as they want to above the last highest offer. The buyer is free to withdraw from the bidding any time they feel the price has gone beyond the figure they are prepared to pay.

Conditions of Sale by Public Auction For Real Property of Queensland

1. Any person intending to bid must register before making a bid, and upon making a bid the bidder must clearly display the bidder number assigned to them by the auctioneer as bids will only be accepted from registered bidders

2. The highest approved bidder shall be the Buyer subject to the Seller's approval and the reserve price, if any

3. The Auctioneer may at his discretion refuse to accept any bid from any person, and no bid if accepted may be retracted without the consent of the Auctioneer No bidder shall advance a less sum or percentage at any bidding than the Auctioneer is willing to accept

4. A bid shall be deemed to be accepted unless the Auctioneer forthwith after it has been made declares his nonacceptance or dissent

5 If any dispute or difference shall arise as to the highest bidder the Auctioneer may reopen the bidding and resubmit the property commencing with the highest amount previously bid for the same or he may decide on the highest bidder in such other manner as he in his absolute discretion shall deem fit and his decision shall be final

6 Immediately upon the fall of the hammer the bidder of the highest bid accepted shall sign these conditions of sale and purchase and forthwith pay the deposit required and shall thereupon be deemed to be the Buyer, otherwise the property may be resubmitted at his or her risk and expense or submitted afresh to Public Auction as if the property had never before been submitted

7. The right to bid by or on behalf of the Seller is expressly reserved

8. The Seller and the Buyer agree to do all necessary acts and to sign all documents and papers for the purpose of transferring the property to the Buyer They also appoint the Auctioneer as their Agent and grant him an irrevocable authority to sign all documents and papers necessary to form the agreement for sale and purchase of the property

9 A bidder shall be deemed to be acting on their own behalf unless, prior to bidding he/she has given the Auctioneer a copy of a written authority to bid for, or on behalf of, another person.

10. The conditions then to apply are as contained in the Real Estate Institute’s copyright form of Contract and Terms of Contract for Houses and Land Eleventh Edition, Units and Townhouses Seventh edition, and/or any other contract of sale that has been on display prior to auction. Clause 3, the finance clause, does not apply and Clause 4, the Building or Buyers Inspection Clause does not apply All bidders at this Auction and, more particularly, the successful bidder shall be deemed to have been given, and to have read and acknowledged the 'Contract Warning' and the 'Disclosure Statement' under the Body Corporate and Community Management act 1997 which are annexed to the contract of sale by virtue of the fact that they have been on display prior to this Auction

N.B:

IN ACCORDANCE WITH THE TERMS OF AUCTION NO COOLING OFF PERIOD WILL APPLY

The auctioneer may, at his/her discretion during the in-room auctions, elect to pause an auction and continue in the order All auctions will be re-opened to the public and either sold or passed in, prior to the closing of the auctions

Conditions of Sale by Public Auction For Real Property of New South Wales

1. The vendor’s reserve price must be given in writing to the auctioneer before the auction commences

2. A bid for the vendor cannot be made unless the auctioneer has, before the commencement of the auction, announced clearly and precisely that a bid may be made on behalf of the vendor by the auctioneer

3. The highest bidder is the purchaser, subject to any reserve price

4. In the event of a disputed bid, the auctioneer is the sole arbiter and the auctioneer’s decision is final

5. The auctioneer may refuse to accept any bid that, in the auctioneer’s opinion, is not in the best interests of the vendor

6. A bidder is taken to be a principal unless, before bidding, the bidder has given to the auctioneer a copy of a written authority to bid for or on behalf of another person.

7. A bid cannot be made or accepted after the fall of the hammer.

8. As soon as practicable after the fall of the hammer the purchaser is to sign the agreement (if any) for sale

9. All bidders must be registered in the Bidders Record and display an identifying number when making a bid

10. One bid only may be made on behalf of the vendor by the auctioneer on behalf of the vendor

11. When making a bid on behalf of the vendor, the auctioneer must clearly state that the bid was made on behalf of the vendor

12. Bidding by a co-owner or executor must be identified in the auction conditions

Things to Consider Buying at Auction

There is no cooling off period when buying at Auction

Ensure you have your finance arranged prior to the Auction Know your limits

Always speak to the Listing Agent about the deposit required at least a week before the Auction

Consider obtaining a Pest and Building inspection prior to the Auction as a standard contract does not allow a sale to be subject to a Pest and Building inspection

Only bid within your means but bid strongly and confidently

If the property is passed in, the property is then on the open market and the highest bidder does not have first right to buy the property.

The Auctioneers decision is final in all matters relating to the Auction.

If the property is passed in you are able to make an offer with conditions on it; however, you need to act quickly as typically, the ideal time to submit conditional offers is immediately after the Auction has concluded.

Make sure yourself and any other decision maker is available for the Auction and only rely on the judgement of yourselves. Do not allow other parties who are not purchasing the property to distract or influence your decision.

Real Estate Terms Glossary

EXCLUDED FIXTURES

Items that are presumed to stay with the property when sold but have been specified on the contract as not remaining

FIXTURES OR FITTINGS

Items of property that are attached to the house or business because they are permanently attached in some way (by nails or wires for instance) Examples are the stove or oven, built in furniture, light fittings, fitted carpets and TV aerials

INCLUDED CHATTELS

Moveable items the owner decides to sell with the property, such as pool equipment, fridge, shed etc These are noted in the contract

ON THE MARKET

During a real estate auction when the bid has reached the vendor’s reserve price the property is announced as ‘on the market’ and is going to be sold at that auction.

PASSED IN

If a property is not sold at auction because the owner’s reserve price has not been reached, it is passed in.

RESERVE PRICE

The reserve price is the minimum price the seller will accept for their property at the auction. This is kept confidential between the seller, listing agent and auctioneer.

FREEHOLD

A freehold property has a clear title of ownership and is not subject to lease.

LEASEHOLD

Sometimes land is subject to a lease The owner of the land leases to the tenant for a fixed rental sum for a fixed period, eg # years