Auction Tips

Benefits Buying Property in an Auction

• Smart investments are made as properties are usually purchased at fair market value through competition.
• Buying property at auction can be very profitable. People knock 15% - 50% off market value at auction & turn this into instant profit!
• The buyer knows that the seller is committed to sell.
• In multi-property auctions, the buyer sees many offerings in the same place at the same time.
• Auction also reduces the time to purchase a property.

Preparing for an Auction

• Contact us and request for a catalogue. We hold regular auction sales with a catalogue printed some weeks in advance. You can also subscribe to our mailing lists.
• Go through the catalogue carefully, read the details thoroughly and identify the properties you are interested in.
• View any properties you are interested in.
• Research the property thoroughly and ask local estate agents, land office, lawyers and neighbours for their opinions.
• Carry out the usual property/land searches.
• Make financial arrangements for deposits and bills.
• Plan ahead if you need mortgage assistance.

Things to Do Before Attending an Auction

• Make photocopies of your identity card for registration, recording and verification purposes of the auctioneer.
• Bring along 5%/10% of the reserve price as bidding deposit in the form of bank draft, banker's cheque or cashier's order made in favour of the assignee.
• Bring along additional fund (in case you are the successful bidder).

Auction Day

• On arrival, you may need to register with the auctioneer in order to bid prior to the start of the auction. Check with your auctioneer.
• On arrival, get a copy of any addendum sheet. These are distributed around the auction room and contain late information or alterations. Don't assume that all the properties included in the catalogue will be offered on the day of the auction. Some may be withdrawn or sold prior to the auction.
• Take a seat or stand somewhere in the room where the auctioneer will able to see you bidding clearly.
• When placing a bid, make sure you gesture clearly at the auctioneer. Subtle twitches and winks will not be picked up. Either raise your hand or nod/shake your head clearly. The auctioneer will warn the room when he is concluding a sale.

Auction Glossary

• Addendum - An amendment or addition to the conditions whether contained in a supplement to the catalogue. This may be a written notice in the catalogue, or announced at the auction.
• Auction - A public sale in which property or items of merchandise are sold to the highest bidder.
• Auctioneer - The person who conducts an auction. The auctioneer introduces each lot offered for sale, acknowledges bids, and announces whether lots are sold or unsold and their final bid prices.
• Auction Catalogue - The catalogue gives a description of the property, details on how to view each property and the General Conditions of Sale. These are prepared by the auctioneer, stating the basis on which the auction is carried out.
• Bid - The offer to buy property at a specific price.
• Lot - Each separate property described in the catalogue or (as the case may be) the property that the seller has agreed to sell and the buyer to buy.
• Reserve Price - A reserve price is the lowest price the vendor will accept.
• Withdrawal - Failure to reach the reserve price or insufficient bidding. The auctioneer will withdraw the property from the auction.