Useful Auction Documents
PHASE 2 – Auction Day
This is your second chance to make a sale “under the hammer”.
- This is your second competitive environment.
- Impulsive/ego bidding on the day created by a competitive environment can boost the price.
- Negotiation can be done on the floor during the Auction between buyer and seller whether or not reserve has been reached.
- If the reserve hasn’t been reached the highest bidder may get the first right to buy the property at the reserve price (with seller’s permission the reserve can be disclosed to highest bidder for this reason).
- All bids are to be considered to be on a cash unconditional basis.
- Vendor bidding – In WA the Auctioneer may bid up to 10 times on behalf of the seller providing the vendor bids are disclosed.
- Home open 30 minutes before Auction (busy property looks popular).
- Open, transparent and ethical negotiating in a friendly and welcoming environment.
- Create an atmosphere, walk and talk during the Auction. It is important that the agent is talking to people in the crowd whether there are buyers or not. This creates the atmosphere.
- Negotiation will take place whether above or below reserve (personally and in private if you have to).
- Whether above or below reserve, always stop to negotiate further with the highest bidder. After all private negotiations, the result has to be announced in an open manner and the buyers have to be given another opportunity to bid whether below or above reserve.
- Property doesn’t have to be called “on the market” when it hits reserve. However prior to selling the property, the Auctioneer must announce that the property “will be sold”. This allows the under bidders one final opportunity.
Vendor bidding is legal and a part of the process and:
- Can only be made below the reserve and up to 10 vendor bids are allowed (never on the reserve).
- Is a guide to what the seller will not accept.
- Vendor Final Bid is usually just below reserve. Some conditional buyers wait to see if the Vendor Final Bid sounds like good value before bidding or putting in offers.
- Vendor bidding can keep the Auction flowing.
- Vendor bidding is normally conducted through the Auctioneer.
- Vendor bidding has to be disclosed to Buyers.
Download “A Handbook For Agents“