Sale by Auction is the most preferred selling method in Melbourne and its suburbs. Many property transactions occur at or prior to public auction each month. Attending an auction with the intention of making a bid can lead to a bit of anxiety. To help you overcome any nerves here a few tips on bidding at auctions.

1. Register your interest

After inspecting a property that you intend to purchase,register your interest with the agent managing the sale. Doing this means you can be contacted in the event that the property is sold prior to auction. JMBenson Real Estate follows a certain procedures when selling prior to auction so that offers from buyers are treated evenly and with confidentiality.

2. Preparing for auction day

A number of issues should be settled to prior to the day of auction to overcome any areas of uncertainty before purchasing.

• You should review all available documentation relating to the property, as the contract you will be asked to sign is a legally enforceable document. Contact your estate agent and ask for a copy of the Contract of Sale and Vendors Statement (Section 32 Statement) and read them thoroughly.
• Consult your solicitor about the documents before attending the auction.
• Get a builder or architect to check the property to report on its condition and any defects.
• Speak to your bank or credit facility to confirm suitable mortgage finance.
• Ascertain the value of your current property.

JMBenson Real Estate can assist by providing you with a full marketing report on your current property prior to the day you plan to attend an auction. Use the FREE Market Appraisal form or call us on 9887 6000.

3. Know your limit

To set an amount on a property, ask the question - do I want this property? Determine what the property is worth to you and what you might pay so as not to miss the chance of owning it. Another property with the features that suits you and your family may not come along soon enough.

The true value of a property is represented by the best price a prudent buyer will be prepared to offer. Often buyers regret not buying a property because, at the time, they felt the price was too high.

Given you particular circumstances, some flexibility may be required on the question of price you are prepared to pay for a property. Seek advice from our salespeople, they will be pleased to assist whether involved in the sale or not. You can always ask another reputable estate agent for advice.

4. Bid with certainty

Some buyers like to bid early, others like to bid late. It does not matter where you start, it's where you finish that matters. How you go about bidding may influence the bids others, be firm and confident, don't show hesitation as this may send the message that you are near or over your limit.

5 The 'Passed In' Auction

When a property is passed in at auction, it means that the vendor's reserve price has not been attained. Most cases result in the vendor setting an asking price in discussions with the agent using the auction final bid as a guide.

The highest bidder at the auction will have the first right to negotiate a sale at the asking price. Properties are often sold this way. If the highest bidder fails to make an offer that is acceptable to the vendor shortly after the auction, then the agents can seek offers from any other people - present or otherwise.

If you are intent on buying a property at auction, try to be the highest bidder. This will enable you to purchase the property at auction or negotiate a purchase should the property be passed in.