There are thousands of people who buy a property this way. Reasons may vary from person to person. The bidder may be overseas, they can’t get to the auction on time, they may feel uncomfortable with public bidding, or there may be a personal emergency.
Whatever the reason, bidding over the phone is an acceptable way to buy a property in Australia.
Here’s a quick guide on how to bid at an auction over the phone:Building a new home involves a lot of trust. Trust in yourself to make good decisions and trust in your builder to turn your dream into a reality. It is equal parts exciting and daunting.
Buying a property at auction over the phone will require you to nominate someone to stand-in for you on auction day. If you don’t have someone to bid, you can nominate an agent instead.
If you’re the successful bidder, indicating how you will pay for the deposit is also an important part of the process. You’ll need to advise the auctioneer that the person who does the bidding for you will the sign the sale document on your behalf.
Apart from the telephone, Skype, Facetime and other apps can also be used to give you an idea of what’s going on during a property auction.
There are also risks involved when you bid over the phone at an auction. The person you nominated might not have any bidding experience, or they might have poor post-bidding negotiation skills so there is a chance that you will not get the property at the lowest price, or not win at all.
You will not be able to feel what the competition for the property is like. You cannot read your competitors' body language or get the dynamics of the competition in the auction room.
That’s why it’s advisable that you nominate someone you know and trust. It could either be a friend that lives in the area or a real estate agent who will act on your behalf. Advising them about your strategies and your bidding limit before the auction day will help.
Bidding over the phone will allow you to bid at an auction despite the distance. Common reasons are:
Phone bidding is also a great option for buyers who are shy or nervous. This can be a less daunting way to buy a property than a live public auction since it provides the comfort of anonymity.
To be a successful phone bidder, you need to do your usual pre-auction preparations such as inspecting the property and arranging your finances including getting your loan pre-approved.
You should be able to brief your proxy before the auction takes place. Tell them your strategies and budget limit.
Tags: buying home at auction