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Bidding early at Auction vs. bidding late...

Home buyers
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One of the questions that buyers often ask is whether there is any advantage to bidding early in an auction, as opposed to leaving your bid until the last minute.

One of the reasons we would usually advise any buyer to consider bidding early at least once is the importance of making sure that the auctioneer is aware of your interest.

Some bidders like to leave their bidding until the property has actually been declared “on the market”, as they then know the highest bidder will be the winner of the auction. However, leaving your bid to the last moment could also mean that your bid gets missed as most auctioneers tend to focus on the bidders that they know have shown interest previously.

Just as importantly, if the bidding does not reach the vendor’s reserve price, the property will then be “passed in”. In this case, the highest bidder then has the first opportunity to hear the vendor’s reserve price prior to any other bidder.

You must be the highest bidder to have this right, so waiting until a property is declared “ on the market” could mean putting another buyer “in the driver’s seat”. If you are not the highest bidder, you may not get the opportunity to negotiate at all as the auctioneer has total discretion to sell the property to someone else without referring to you at all. That’s why showing your interest to the auctioneer by bidding is so important.

Good luck in your house hunting and remember, don’t hesitate to ask if you have any questions about auctions and how they work.

Home buyers
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