Friday, August 15, 2008

Buying at Auction? Don't forget to register!

Two weeks into the new legislation the Real Estate Industry is settling into this revised way of conducting business.

A couple of weeks ago I filled you in on how pricing has become more transparent under the new reform. Now allow me to give you the run down on the new Auction process.

To be honest, the fundamental structure of an Auction hasn’t changed that much. There’s still an Auctioneer, a Clerk to record bids and of course some excited consumers just itching to make that first bid! However there are some key differences that you need to know about if you’re thinking of buying at Auction.

1] To bid at Auction you must be registered!
- Prior to the Auction register as a bidder with the properties Sales Representative and collect your bidder number.
- Remember to bring a form of ID to the Auction. You cannot register to bid without this being sighted.
- You’ll be given the following Government forms to guide you through the purchase process:
R3    Buyers Information Notice
R4    Bidders Guide
R5    Collusive Practices
- At a Toop&Toop Auction you’ll receive a “Toop Guide” which includes your registration form, all the prescribed Government forms and your unique bidder number on the front and back covers for the Auction itself!

2] The Auction gets underway
- At the commencement of each Auction the Auctioneer will audibly announce the Auction Terms & Conditions. This process could take around 5 minutes so please be patient as it is a legal requirement that this is done.

3] Placing a Vendor Bid
- During the course of an Auction, the Auctioneer may exercise their right to make a bid on behalf of the Vendor.
- The Auctioneer is entitled to make 3 ‘Vendor Bids’ below the properties reserve price, and will disclose any such bid as it is made.

4] It’s time to Bid
- It’s important to note that only the individual who has registered can bid. For example if a couple attends an Auction and the wife registers to bid, the husband cannot then raise the bidder number. If this occurs, the Auctioneer will not accept the bid, so it’s a good idea for both individuals to register.
- When you’re ready to bid, raise your ‘Toop Guide’ in the air with the bidder number clearly showing to the Auctioneer.
- The Auctioneer will then announce your bidder number and the amount, clearly identifying who the bid is with at that point in time.
So now buying at Auction is even more transparent than ever. It may take you a few Auctions to get used to these changes, so why not attend a few near you to watch and get used to the process?

Happy Bidding!

1 comment:

Jason Rose said...

G'Day Anthony,

We have had to register bidders in Queensland for the last couple of years.

One of the great things about this, is both the agent & the auctioneer have a clear idea who is there to bid.

Even though as an auctioneer we teach agents to ask the question prior to auction ie are you interested in the property, it has always amazed me when I ask an agent prior to auction how many bidders they expect, it was hardly ever 0 or 1 it was always 5-8 and the agent always would wonder why no one bid at auction (yes, i do think that some agents still believe in the tooth fairy)

The process of registering bidders has been, in my opinion, a good move. Especially in the ever changing consumer market. The clearer understanding that all consumers have of the process will mean we will end up with more people willing to bid at auction.

Keep up the good posts.

p.s. I have written a post on my blog for Queensland agents here is the link