Auction Bidding Tips
Auction is one of the most exciting and effective methods of buying and selling property. Yet, for some potential bidders, buying at auction can be an intimidating process so it is important to learn more about the system so you can bid with confidence.
Auctions are very transparent as they allow bidders to be aware of competitor’s offers. The changes to real estate laws in July 2008 provide even greater protection for the consumer as all vendor bids must be clearly disclosed and dummy bidding is completely outlawed.
With these changes also comes responsibility for bidders to ensure total transparency. For example, the new laws require all bidders to register before the auction and obtain a bidding number which must be raised when placing a bid.
Bidders should register with the relevant agent before the day of the auction or, at the very least, 30 minutes before it starts. However, if you do not provide ID, you will not be able to register or bid.
The sales representative is also required to give all bidders information about the bidding process (via a Form R4) and information about not engaging in collusive practices (via Form R5).
Before you attend an auction at which you are planning to bid, it is a good idea to attend other auctions to familiarise yourself with the auction process and compare prices.