Every week a percentage of properties that go to auction pass in. In a lot of cases, the auction passes in on without anyone bidding and then the interested parties go straight into negotiation after and have a mini auction of the auction. So, as a buyer, you are left in a similar position whether you were bidding at auction or after.

Your best option is to negotiate exclusively with the vendor at their reserve price. By putting your hand up and holding the final bid at a passed in auction, it gives you the sole right to treat with the vendor and see if you can come to an agreement on price. This effectively cuts out all other competitors and takes the pressure of you to bid against them.

When you’re buying real estate, the competition is what forces prices up and gets you to spend more. Any way you can eliminate the competition will always give you the upper hand. Especially on the auction day when an owners mind is set toward selling. So, at the next auction that is just about to pass in on a vendor bid, put your hand up and take the negotiations into your own hands.

 

DISCLAIMER

The following advice is of a general nature and intended as an opinion and broad guide. For all legal, financial or real estate advice you should obtain independent professional advice to do with the specific nature of your circumstances before making any legal, financial or real estate decisions.

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