- Posted 15 Dec
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If you’re investing in property, sometimes you can’t be at the auction to make a bid. What do you do? You get your agent to act on your behalf by placing bids while you’re on the phone…
There are thousands of people who buy real estate in this way, and for all sorts of reasons.
Maybe they are an overseas buyer and can’t get to the location in time, or a personal emergency prevents them from being there.
Whatever the reason, phone bidding at auction is now an acceptable option at most auctions around Australia.
But how do you actually bid via the phone? What’s the process?
Phone Bidding Process
Before you can bid over the phone, you’ll be asked to sign a form to nominate someone to stand-in for you on auction day. The form will nominate someone that you know and trust who will bid on your behalf, while you’re on the phone during the auction.
If you don’t have someone able to do this for you, you can nominate an agent instead. You will also need to advise (on the form) how you will pay the deposit on the day if you’re successful and you’ll also need to sign off that you nominate the auctioneer to sign the sale document for you.
The use of Skype and FaceTime are also employed so that you can also ‘see’ what’s going on.
Real Estate agents, Ray White Queensland, conduct 1000s of auction’s each year. Of these, the Gold Coast office does about 600 per year, and estimates that about 200 telephone bidders have been at auction over the past 12 months.
As a real estate agent office, which are often asked to act on behalf of a buyer, they make sure that bidders can always hear the auctioneer by standing close to the speakers.
Each bidder must pre-register to meet legislative requirements and if you are working with a real estate agent, advising them on how you want them to conduct the bidding is always helpful. Strategies might include holding back until close to the end, starting strongly or offering small or large bids.
In most instances though, it is always recommended that a friend be the phone bid proxy, particularly if they live in the area that the auction is taking place in.
When to Bid by Phone
The following reasons might be why you choose to bid via phone:
- You might not enjoy auctions
- You’re well-known and want anonymity
- You can’t attend in person due to travel restrictions
- You’re unwell or caring for others
- You’re working with a buyers agent
Most real estate agents will opt not to bid on your behalf due to potential accusations of false bidding that can occur.
If you’re looking to invest in property and are looking in locations that are not close to you geographically, then you’ll need to consider who you’ll use as your proxy before you take any further steps.
Need help with finance or further details on what your mortgage options are? Get in contact with the team at Australian Credit and Finance today.