phone bidding at auctions

[dunno_anything]

Hey all,


we are looking in buying an IP interstate which is going for auction next month.

we are quite keen on the prop but the only issue is we are going overseas for a trip... a trip our family has planned for ages.

so.... the agent said we can just bid over the phone on auction day, but we are a bit uneasy about the whole thing.

whilst not being at the auction may take some pressure/emotion out of the bidding process, my wife is worried that the agent may do a dodgy and actually jacked up the price or lie about a competing bid so we bid higher....

yes, we dont trust agents... period.


anyone has any experience they can share??

and if we do go ahead, whats the procedure?
do I need to send the agent 10% bank cheque prior to auction day in case we get it?

will the agent charge me a "fee" for using him as a proxy bidder?

thanks.

 

[Bigtone]

where is the property?

i would use a buyers advocate, for $500-$1000 the peace of mind would be worth it

 

[Rolf Latham]

where is the property?

i would use a buyers advocate, for $500-$1000 the peace of mind would be worth it

what BT said

most BAs have this service available.

More used for "privacy" or reasons other than physical absence, but no reason why a BA wont step up to the plate to spend your money

ta
rolf

 

[Aaron_C]

whilst not being at the auction may take some pressure/emotion out of the bidding process, my wife is worried that the agent may do a dodgy and actually jacked up the price or lie about a competing bid so we bid higher....

What you do is ensure that you set a maximum bid limit so that they can never pay more than what you have agreed to.

 

[boomtown]

Why wait for auction? Make an offer now that you are happy with and if they don't take it go enjoy your holiday and forget them.

 

[Jacque]

We've had many clients over the years simply use us for bidding services only. Main reasons are due to absence, overwhelming nervousness, anonymity (we use a POA) or lack of experience with the auction process. Given that we also include, as part of our service, follow up negotiations should the property pass in (which is happening often lately) it actually represents good value for money for a professional to do it for you.

The trouble is that you leave it too late (a few days beforehand) you may not find a good BA who's available on a Saturday (as most auctions are).

A selling agent won't charge you a fee to bid- after all, he's being paid by the vendor to obtain the best price As for deposits, work out with the other side what's acceptable on the day. We suggest requesting a certain amount being put down if successful, with the remainder then due the first business day following auction. Some vendors are pickier than others here.
Best of luck.

 

[china]

What you do is ensure that you set a maximum bid limit so that they can never pay more than what you have agreed to.

Then you can be assured that the bidding will open at your maximum bid price.

 

[tez]

I bought one of my IP's over the phone with the selling agent and it all went to plan. Had no dramas with it and could hear the action in the background, while I was at my desk working away

 

[NBS]

I am also looking at a property interstate and considering phone bidding again I've been involved in a couple to date one I could hear everything however went over my limit, the other I heard some of the auction then all quite and told the price was now $$$ I felt something was wrong and did not place a bid.

I guess it comes down to confidence and trust you have with the person on the other end of the phone.

I had all the contracts and paperwork well before auction date. I signed what I had to for the agent to phone bid and I had monies as set aside as per the conditions.

There was no fee for proxy bidder in my case.

Phone bids for me were in Darwin and Queensland. Will I phone bid again most likely.

If I am really honest with myself I am more of "have to see first hand what I am buying" mainly because the type of property I chase. So if I plan to bid on this one interstate I will most likely hop in the car and go for a drive as its only a bit over 600 k. I also prefer to be hands on at auctions maybe its a newbie thing.


Brian

 

[matto_]

We have bid at an auction over the phone - via my Mother in Law.

We didnt end up winning at the auction however were comfortable that we were well represented.

I guess you just have to be able to feel comfortable/trust the person you are working with.

 

[Jake Milne]

Bidding over the phone is fine if you use a person you trust or a professional.

Before doing so just be very clear as to how much you're willing to spend. Set the price and if it goes over make sure the bidder walks away for you.

You'll need to organize a power of attorney for someone to bid on your behalf. They're really quite simple - if you want a copy of one just email me and I'll pop one over - [email protected]


Also if you're successful the purchaser will need to change the contract to stipulate that you're the purchaser and the bidder is your nominee.

This is what will need to be written:

CONTRACT OF SALE - Particulars of sale

SIGNED BY THE PURCHASER: (person who is bidding for you) as POA
STATE NATURE OF AUTHORITY: Power of Attorney

PARTICULARS OF SALE (usually page 2 or 3)

PURCHASER - (your name) AND OR NOMINEE, (your address)
PURCHASERS REPRESENTATIVE - TBC

Please consider this as general advice and speak to a solicitor or conveyancor before you proceed to ensure you're covered.