A property auction can be a good place to acquire your next investment.
Owing to the crazy sense of competition it can instill – there can be a tendency to go overboard.
So how can you come out on top and avoid overpaying?
Here are some do’s and don’ts to help you survive your next property auction – especially one of them most people get wrong:
Do These For The Property Auction:
1. Allocate a budget before the auction
As I suggested before, ensure that you have a pre-decided budget for the property auction. While your adrenalin and the zeal to hog the limelight may make you bid double your pre-decided amount, convince yourself that the “moment in the sun” is very temporary but fat bills are for keeps.
2. Come prepared.
When I say “prepared,” it means putting your game-face on and focusing on the task at hand. Before going, make sure you have done your research and already know every information that’s related to the property.
Apart being well-informed, I usually recommend that my clients come to an auction properly dressed – no thongs, tank tops or shorts. Australians are pretty laid-back when it comes to fashion, but during property auction, you do want to look presentable and serious about making a home purchase. Dressing to impress sends the signal that you have an endless budget and can intimidate others so they stop bidding earlier.
Also, ask questions at auctions. Not only is it your right as a bidder but you also get to pre-establish certain facts. Ask if the reserve price has been met or if the property is on the market. Sometimes, in absence of a “reserve price” bid, the vendors may think about lowering the reserve price a little. Tactful engagement of words with the vendor’s agents and the auctioneers certainly helps.
3. Be noticeable at the property auction.
Property auctions can be quite intimidating, especially for first-timers, which is why most buyers shy away from the front row. I tell my clients to not be shy and position themselves somewhere prominent and noticeable in the crowd. As I said previously, it’s about putting your game-face on during auctions so don’t hide up the back or in a corner. Before the auction starts, pick a place where you can see what’s going on, one that’s strategic enough so the auctioneer can clearly see and …
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There’s nothing quite like being a bidder at Barrett-Jackson! Whether it’s your first time or 40th, these 10 tips may be just what you need to enhance your experience:
- Sign up early. Sounds simple and it is! You can take advantage of early registration pricing, plus your credentials and parking pass will be mailed to you prior to the start of auction. Generally, the perks of registering early end 30 days prior to the auction, so visit Barrett-Jackson.com to get started today.
- Take advantage of the perks. Depending on which tier you register for, some attractive benefits are available. The Opening Night Gala tops the list for many attendees and is generally held the evening before the auction starts. Guests enjoy live entertainment, a complimentary array of food and beverages, and the camaraderie of other car collectors. Another top draw is the bidder bar located within the auction arena, where you can socialize with other collectors and redeem your drink cards. The best perk, though, is sitting in the “bidders-only” section of the auction arena. This area is not open to the general public and is restricted to bidders and their guests (with a small portion designated as assigned seating for Platinum-level bidders).
- Download the App. Barrett-Jackson’s Beyond The Block app is available on Google Play and the app store for Apple and is free of charge. It gives you a streamlined mobile connection to all the auction has to offer, including the location of each and every auction car — which can be most helpful when taking advantage of tip number four.
- Attend the auction Preview Day. With the intention of giving bidders a chance to see all of the auction cars before the general public arrives and the first gavel falls, Preview Day is the perfect setup. You can stroll through the Showcase Pavilion and all of the auction car tents at your own pace without the worry of missing anything on the auction block.
- Upgrade your experience to include Muscle Lounge access. This private skybox suite was created with bidders in mind, so you can enjoy an unobstructed view of the auction with food and drinks as part of the package. The suite is located above the main auction floor and tickets can be purchased when you register to bid, or on-site in the auction office.
Buying a car at auction can be a great way to find a bargain – after all, this is where the motor trade go to purchase their stock.
However, it can be a tricky business if you don’t know much about cars and, as most consumer guides will tell you, your normal legal rights may not be applicable as sellers can issue disclaimers such as the phrase ‘sold as seen’.
Before you buy, get a feel and flavour of the process. Things move fast, so make sure you’re comfortable with the process before you bid. You may be able to subscribe for auction house catalogues beforehand to find the latest vehicles on offer.
- When you arrive at the auction, get a catalogue. This lists all the vehicles entered in the sale.
- View the vehicle that you’re interested in bidding for. Arrive with plenty of time to spare before the auction starts to have a look around and check the vehicle details (usually displayed in the windscreen).
- Inspect the bodywork of the car, looking along its lines and check for dents or misaligned body panels – it could have been in an accident, repaired or at worst an insurance write-off.
- Stick to your budget! Don’t get caught up in the action.
- Buyer’s premium or administration charges are in addition to your bid. Check with the auction house beforehand for details of their fees and charges.
- Remember to take along photo ID and proof of address.
- When buying a car at auction, listen to the auctioneer. They’ll include vehicle details e.g. service history, road tax and verification of mileage.
- If the hammer falls on your bid then well done, you’ve been successful! You’ll then need to see the auction clerk (they’re usually next to the auctioneer).
- A ‘provisional bid’ means that the highest bid was lower than the reserve price. Auction house staff will liaise with the seller to see if your bid will be accepted or negotiate further on your behalf.
- There are numerous ways to pay. Deposits and full payments can be paid by:
- Credit card**
- Debit card
- Solo card
- Banker’s draft
* There’s usually a handling fee. Money laundering legislation allows a maximum of £8,999.
** There’s usually a 3% surcharge on all credit card transactions.
So, if you decide to take the plunge and opt for buying a car from an auction, remember the key pointers …
If you’ve never attended an auction it is a good idea to go to one to witness what happens before you think about buying. This will give you an idea of how auctions work and an understanding of the terms used and the conditions of sale. The law permits auction houses to change the usual conditions of sale (and they usually do) by removing the buyer’s rights as outlined in the Sale of Goods Act.
Although auctions can be far cheaper than used car dealers, a dealer can give you peace of mind with the opportunity for test driving the vehicle before buying and maintenance warranties. It may be worth spending a bit extra to know that if anything goes wrong, you can take it back to be repaired. Unfortunately, this won’t happen when buying from an auction.…