You can join other potential buyers and bid for the property on the day. If you want to do this you must make sure that you are a cash unconditional buyer. If, for some reason, you cannot attend the auction you can have someone bid on your behalf, or you can bid via telephone, but you must notify the auctioneer as there may be paperwork to be completed. If you are unfamiliar with auctions you should attend several other auctions to view the process beforehand. You will notice they follow a similar format – the auctioneer goes through the terms and conditions of the auction, then calls for an opening bid. Buyers bid back and forth until the property is sold under the hammer. If there are no bids, or the bidding stalls, the auctioneer may make a Vendor Bid – this is a bid on behalf of the vendor and must always be declared as such.
The auctioneer can legally make up to 10 Vendor Bids, with the intention of bringing the bidding up to the Reserve Price – this is the price below which the vendor will not sell. Buying at the auction has several advantages for buyer: You get to decide where you are comfortable Bidding to and you get to see what others are prepared to pay. You know you are paying a fair market price. Negotiation is transparent to all, nothing is hidden, all buyers get equal opportunity. Vendor Bidding helps you get to the Reserve Price and also helps you understand where the vendor will look at offers.