Frequently Asked Questions

There are often questions posed around the auction process and what to do on auction day. Below are examples of questions and answers. Feel free to reach out to Qld Auction Services if you have any additional questions.

faq #1

Why won’t the agent tell me the price at an auction?

It is a common frustration of buyers when they find a property they like and are unable to get a price from the agent.

This is because agents are prohibited from doing so by law. Section 574D of the PAMD Act states:

“(2) If the offered property is to be offered for a sale by auction, the real estate agent must not disclose to the potential buyer –

(a) Whether the seller has set a reserve price for the offered property; or

(b) The reserve price set for the offered property; or

(c)  An amount the real estate agent considers is a price likely to result in a successful or acceptable bid for the offered property.”

 The agent has been appointed by the seller and therefore has the legal duty of care to protect their interests. For more information go to www.fairtrading.qld.gov.au.

faq #2

why sell property by auction?

Some of the benefits of the auction process are:

Serious Vendor

Many properties can be listed for sale through various forms of advertising (internet, classifieds etc), however these properties may never receive any, or little inquiry. Most markets are currently characterized by an increased number of properties for sale, and with fewer qualified purchasers. If “target marketed” correctly, the auction process will capture increased purchaser inquiry and decrease the time to sell the property. You will be dealing with serious buyers.

Reduces Number of “Days on Market”

Statistics show that the auction process significantly reduces the time to sell the property when compared to the private treaty process. Using the current high supply and low demand characteristics within many markets, a correctly targeted auction campaign will always increase the amount of purchaser inquiry, thereby allowing the Vendor the chance to have a competitive buying and bidding environment via a deadline process.

Structured Selling Plan

The auction process is just that – a process! Your salesperson will explain the whole process from start to finish at the commencement of the targeted auction campaign, and will keep you informed all of the way through.

Competitive Bidding

We have all seen auctions where there are multiple bidders who compete for the purchase in the open forum auction environment. As a Vendor, why not engage an auction strategy which will allow this to happen. When a property is unique and “highly sought after” (therefore low supply and high demand), the auction process will ensure competitive bidding. Conversely, if a property is within the low demand, high supply category, the auction process will allow your Agent to capture the qualified buyers and use the deadline of the auction to transact the sale sooner.

Unconditional Exchange

Contracts are considered cash, unconditional, not subject to finance, building & pest inspection or any cooling off period when the property is sold under the hammer. If the property doesn’t sell under the hammer, you are increasing your chances of receiving an unconditional exchange by capturing more qualified purchaser inquiries.

faQ #3

WHAT ARE SOME AUCTIONEERS TIPS FOR AUCTION DAY?

Purchasing a property is a big decision and can often be quite daunting. Auctions play a major role in how properties are sold in Australia so it is important to feel comfortable about bidding at auction. If you don’t feel confident in bidding, your agent or perhaps a friend or relative can convey these bids for you as long as the relevant paperwork has been completed prior to the auction starting.

 Here are some tips that will help you to determine a bidding strategy

Don’t Strategise Too Much

Each auction is different, so don’t get caught up in worrying about what will happen or how the bidding will unfold. Focus on what you are there to do and that is purchase a property. Be the first person to bid. Our experience shows me approximately 70% of people who open the bidding, buy the property.

Bid With Confidence

Many buyers sit back and wait. They want to get a feel for what is about to unfold. More often than not, it is the bidder that bids with confidence and without hesitation that walks away with the keys to their new home. If someone bids, come straight in with another bid. You have nothing to lose and everything to gain. Show your competition that you want the property at any cost. Set the pace don’t chase the pace.

 Set Yourself A Base Limit

If you are going to set yourself a limit make sure that limit has flexibility. As strange as that may sound, too many times I have seen bidders miss out on their dream home for $1,000 or $10,000 when the other bidder is at their limit also. In a very short time you will be happy for going that little bit extra and securing the property.

Don’t forget your identification

It is a requirement by law that you register for all auctions in QLD. The easiest way to register is with a driver’s license. If you don’t have ID then you cannot register, so don’t forget. To save time on auction day there is the option to register prior to the day. See Bidder Registration Form in Resources.

What Happens If A Property Is Passed In

Most auctions we facilitate have conditional buyers (buyers that can’t bid under auction terms and conditions) waiting and hoping that the property passes in. Should the property pass in, everyone will have equal opportunity to submit their offer. If you can bid under auctions terms and conditions, give your best shot at the auction as it is the most transparent way to buy and in most cases, with less competition.

What Is A Vendor Bid

In QLD the auctioneer is allowed to make 1 or more bids up to but not including the reserve price on behalf of the vendor. A vendor bid must be disclosed by the auctioneer. It is not the reserve price and does not indicate a price at which the vendor will accept. A vendor or seller bid is used in different circumstances to either start the bidding, increase the bid to a level closer to what the vendors will accept or position a property at a price at which the vendor will take bids nothing less than.

Why Might An Agent Or Auctioneer Encourage You To Increase Your Own Bid

This is common occurrence in today’s market so don’t feel uncomfortable about it. At some point in the auction, the estate agent or auctioneer may come up to you and ask you to increase your own bid. This may occur as your current bid may not be at a price at which the vendor will accept. Therefore you may need to increase your own bid if you wish to purchase the property.