How to bid at Auctions

Bidding at auctions is exciting and best of all, anyone can do it. Just remember that if you are successful, you own the property.

1. The Opening Bid
You can nominate your own opening bid when the auctioneer asks for one. Just remember that if your offer is too low, you will get trumped immediately by someones better offer.

2. Continuing to bid.
The auctioneer will nominate the amount of the bid he is soliciting. You can call out your own amount but the auctioneer is not obliged to take it if he considers it to be too low.

3. Vendor Bids 

The owner of the property, called the vendor, is entitled to bid for their own property. This is called a vendor bid. These vendor bids are only taken by the auctioneers and will be clearly stated that it is a bid on behalf of the owner. You will hear the auctioneer announce that "on behalf of the owners, I bid $XX,000" or " the bid is with me" or similar phrases.

Vendor bids are only ever taken before the property is actually 'on the market'. Once the auctioneer announces that the property has reached the reserve price, then no further vendor bids will be taken.

4. Closing the gap.
As the bidding process continues, the bids will become smaller. It may be that another thousand dollars is the difference between you buying your dream property or missing out. Don't have post auction regrets because you did not go the full distance.