Bidding interstate - process? I need someone to do this for me.

[scientist]

I need someone to attend auctions for me. Do I have to get a buyer agent? I don't actually need a buyer agent, I'll be doing all the property selection myself but I can't afford the time and effort to fly down to Melbourne (from Sydney) for each auction (also more importantly I work on saturdays and I can't take this time away).

So what can I do? Do buyers agents do this sort of thing? I really don't even need one, any person can do it for me, but I'm not familiar with the details. Does anyone (e.g. investors who've done this before) have any tips? Does anyone in Melbourne have a few free Saturdays and want to earn some cash?

edit: apparently we'll need a Power of Attorney document set up between us, if we get someone to do this for us. Sounds easy enough!

 

[Propertunity]

I need someone to attend auctions for me. Do buyers agents do this sort of thing?

Yes, that's one of the services a BA would perform.

I really don't even need one, any person can do it for me, but I'm not familiar with the details.

Really? You want to give someone POA to bid on your behalf, not get emotional about it, not allow the auctioneer to extract any more $'s from them, hand them a blank signed cheque and allow them to fill in the details of the deposit if you are the eventual winner, not carry PI insurance in case they mis-bid or go over your written limit? That's a hell of a lot of trust to put in someone in my opinion. At least you are somewhat protected by using a licensed, insured agent who does this every week for a job.

edit: apparently we'll need a Power of Attorney document set up between us, if we get someone to do this for us. Sounds easy enough!

Yes, easy to set up.

 

[scientist]

Yes, that's one of the services a BA would perform.

Really? You want to give someone POA to bid on your behalf, not get emotional about it, not allow the auctioneer to extract any more $'s from them, hand them a blank signed cheque and allow them to fill in the details of the deposit if you are the eventual winner, not carry PI insurance in case they mis-bid or go over your written limit? That's a hell of a lot of trust to put in someone in my opinion. At least you are somewhat protected by using a licensed, insured agent who does this every week for a job.

Yes, easy to set up.

Thanks - those are all fair points and legitimate concerns. I'm calling around for quotes for this service from professionals but honestly if one of the forum regulars pm'ed me I'm prepared to trust them.

I guess the main worry is if they mis-bid and go over, in which case I'd still be liable for the higher purchase price, but I'd have a claim against the guy who I hired, but that situation is the same with a professional, just... less likely to happen.

No need to hand anyone a blank cheque - those agents can chase me down if I win it, at the end of the day no one's getting sued over a minor inconvenience like that. I'll express them something on Monday morning.

In terms of how much the auctioneer can squeeze out of the bidder - I'm fine with that as long as he/she doesn't bid over my limit, which goes back to the first point being my main concern. Really if they don't majorly screw up and over-bid, how much the agents can squeeze through tactics and talk is limited to how much they can talk the 2nd highest bidder into bidding again, which happens anyway even if I'm there.

 

[Propertunity]

A BA will set up with you:
1. POA
2. Authority to bid (for the REA)
3. Authority to bid to a limit (BAs eyes only)
4. Methods of how to pay the deposit

He/she will also be authorised (if you want) to negotiate on your behalf in the event that the property is passed in.

With all due respect, this is something I'd rather have a licensed professional doing, rather than some stranger off an internet forum.

But I do accept that people do it. I even see a lot of people give this authority to an agent within the agency that is actually selling the property!

 

[scientist]

Thanks for the good advice, I'll probably go down the professional route - just got a few quotes over the phone and it's not as expensive as I thought. I always eagerly make a post a bit prematurely, but all good info to have.

 

[MIW]

I need someone to attend auctions for me. Do I have to get a buyer agent? I don't actually need a buyer agent, I'll be doing all the property selection myself but I can't afford the time and effort to fly down to Melbourne (from Sydney) for each auction (also more importantly I work on saturdays and I can't take this time away).

So what can I do? Do buyers agents do this sort of thing? I really don't even need one, any person can do it for me, but I'm not familiar with the details. Does anyone (e.g. investors who've done this before) have any tips? Does anyone in Melbourne have a few free Saturdays and want to earn some cash?

edit: apparently we'll need a Power of Attorney document set up between us, if we get someone to do this for us. Sounds easy enough!

I have bought a property in QLD via auction process from my phone living in NSW. I authorised the selling agent to bid on my behalf... Surely you have seen some auctions on TV, where agents are authorised to bid on you behalf.
You just need to do the paperwork with them....to authorise them or anyone else for that matter!
It didn't cost me anything, I was bidding via the phone so I was in control of the price! I hope that helps!

 

[perthguy]

Thanks for the good advice, I'll probably go down the professional route - just got a few quotes over the phone and it's not as expensive as I thought. I always eagerly make a post a bit prematurely, but all good info to have.

My brother offered to bid on a house in Melbourne when I lived in Perth. The auction went fine. I was on the phone giving him instructions which he followed. He signed the contract with his name and/or nominees. That side went very well but I had issues at settlement with my settlement solicitor ignoring my instructions and taking instructions from him. It worked out but I wouldn't recommend it. Professional route makes a lot more sense!

 

[chilliblue]

I have had my dad pre approved by the agent to sign on my behalf and had their confirmation of allowing direct bank deposit for the auction deposit whilst I bid over the telephone on two separate occasions.

If I could not bid, then I would definitely have used a BA with clear instructions.

Dad loves the fact that he has "brought" two houses without the hassle of paying for them.

 

[NPB]

I have bought a property in QLD via auction process from my phone living in NSW. I authorised the selling agent to bid on my behalf... Surely you have seen some auctions on TV, where agents are authorised to bid on you behalf.
You just need to do the paperwork with them....to authorise them or anyone else for that matter!
It didn't cost me anything, I was bidding via the phone so I was in control of the price! I hope that helps!

Do you really want the selling agent who has a vested interest in maximizing the price bidding on your behalf? You could be bidding against a tree or yourself and have no idea.

Obviously I am biased to using a professional but if you don't go down that path at least use someone you trust who has YOUR best interests at heart.

Good luck

 

[Ed Barton]

A BA will set up with you:
1. POA
2. Authority to bid (for the REA)
3. Authority to bid to a limit (BAs eyes only)
4. Methods of how to pay the deposit

He/she will also be authorised (if you want) to negotiate on your behalf in the event that the property is passed in.

With all due respect, this is something I'd rather have a licensed professional doing, rather than some stranger off an internet forum.

But I do accept that people do it. I even see a lot of people give this authority to an agent within the agency that is actually selling the property!

What would a BA charge for a 'bid only' service? ie bare bones, no house selection, no inspections, no coordination, just bidding with all the appropriate paperwork completed.

I'd expect to pay around $500 for this service whether I won, or lost the auction. More if it included post auction negotiations if passed in.

 

[scientist]

What would a BA charge for a 'bid only' service? ie bare bones, no house selection, no inspections, no coordination, just bidding with all the appropriate paperwork completed.

I'd expect to pay around $500 for this service whether I won, or lost the auction. More if it included post auction negotiations if passed in.

Cheapest I've come across is $300 per callout and no additional on win.

Still, I'm tossing between going there myself for a day (if I can hit 2 or 3 auctions on the one day then it's definitely worth it) vs going down this route.

 

[MIW]

Do you really want the selling agent who has a vested interest in maximizing the price bidding on your behalf? You could be bidding against a tree or yourself and have no idea.

Obviously I am biased to using a professional but if you don't go down that path at least use someone you trust who has YOUR best interests at heart.

Good luck

If you have done the feasibility study, inspections, your number,s the budget, etc...., when you know what you are doing and you form a relationship with them then I see no problem. I actually heard each auction bid via the phone so at each bid I could have stopped, right?
As I say I had no problem and bought the property number of years ago...
The agency company manages quite a few of my IPs and they can be of value when locating properties for me with my specific criteria.
Having a team of people, includes working with agents, wether prospecting, buying, selling, or managing, wouldn't you agree?
Every one likes a different cup of tea or coffee and how we take it, right?

 

[Propertunity]

What would a BA charge for a 'bid only' service? ie bare bones, no house selection, no inspections, no coordination, just bidding with all the appropriate paperwork completed.

I'd expect to pay around $500 for this service whether I won, or lost the auction. More if it included post auction negotiations if passed in.

You're pretty much on the ball. $500 + GST = $550 to turn up and bid including a pre-auction meeting to discuss price limit, tactics, and complete the mountains of paperwork if one or all of the intending purchasers will be absent.

There is an equivalent success fee if we win and more if post auction negotiations (in the event the property is passed in) progress past 12 midnight of the day of auction (when auction conditions are over and it is back to private treaty).

 

[rosehill]

Need someone with professional experience to do pre-settlement inspection too if buying interstate?

 

[Propertunity]

Need someone with professional experience to do pre-settlement inspection too if buying interstate?

Yes, the BA can do this for you, or more likely the PM you hire to manage the property.

 

[NPB]

If you have done the feasibility study, inspections, your number,s the budget, etc...., when you know what you are doing and you form a relationship with them then I see no problem. I actually heard each auction bid via the phone so at each bid I could have stopped, right?
As I say I had no problem and bought the property number of years ago...
The agency company manages quite a few of my IPs and they can be of value when locating properties for me with my specific criteria.
Having a team of people, includes working with agents, wether prospecting, buying, selling, or managing, wouldn't you agree?
Every one likes a different cup of tea or coffee and how we take it, right?

It's going to be pretty rare , especially when buying interstate that you have a strong relationship with the agent who happens to be selling the property you want. If you had a good relationship with a local agent whose agency was not selling the property I would be comfortable with that and have actually done that myself but not if it was their agency selling. Anyway we can agree to disagree.

 

[Jacque]

Thanks for the good advice, I'll probably go down the professional route - just got a few quotes over the phone and it's not as expensive as I thought. I always eagerly make a post a bit prematurely, but all good info to have.

Hi Scientist

Agree with Prop here that the professional route is the safest and least risky for your circumstances. Don't forget too that you can get the auctioneer to sign on your behalf (if they agree and paperwork is in order) if absent. Not all will do but certainly the majority, in our experience. Less hassle than a POA that's for sure.

Shop around for sure but make sure you get someone experienced. If it gets passed in, this can make all the difference

Plenty of REBAA members who offer this service so check out the VIC list here but get in early as the best BAs are usually booked up a few weeks in advance on Saturdays

http://rebaa.com.au/members/vic/

 

[scientist]

Thank you very much for all the helpful suggestions!

 

[MIW]

It's going to be pretty rare , especially when buying interstate that you have a strong relationship with the agent who happens to be selling the property you want. If you had a good relationship with a local agent whose agency was not selling the property I would be comfortable with that and have actually done that myself but not if it was their agency selling. Anyway we can agree to disagree.

Perhaps I have not presented the full story, as I already owned a number of IPs, which were managed by that agency, so I just added more to my portfolio, so it wasn't at the first purchase.....