Buying a home
Key players at an auction - The Auction Advantage Ep 4
16 August 2018
Nicole Jacobs, buyers advocate for Channel Nine's The Block, presents The Auction Advantage: tips to help you understand the auction process.
A lot of work goes into making an auction happen, and in most cases an auction will draw a crowd of buyers. It’s all part of the theatre and show that auctions have become.
When you get to the auction you’ll see a lot of people. Don’t feel overwhelmed. They won’t all be there to bid. There’ll be people from neighbouring streets watching to see what the property goes for, as well as people observing to get an idea of what the market rate is, possibly before bidding at their own auction in the coming weeks. And, of course, several estate agents and the auctioneer.
[Nicole Jacobs]: The key players in an auction – well prior to auction of course there’s your mortgage broker or your banker.
There is your solicitor or conveyancer.
And of course, there’s your estate agent that you’ve been dealing with when you’re going in to buy, so that’s the selling agent.
And don’t get forget that they’re the seller’s agent – they are bound to sell that property.
They are there to get the best price possible for the vendor, not you.
The other key people:
Other competitors, so other buyers.
A professional buyer’s advocate – you may have a buyer’s advocate, you may not.
And, of course, the penciler on the day, who’s the person that usually takes down how much it’s up to.
And quite often estate agents will disperse these people amongst the crowd so that if you’re clearly bidding, they’ve got you next to them so that they can tell you where it is.
So that if you do lose your spot, then they’re there to remind you what it’s up to, which is really good.
People you’ll meet before auction day
A mortgage broker or banker
In most cases, if you’ve made it to an auction you would have already engaged a mortgage lender to find out how much you can spend on a property.
If you’re still looking for help, you can contact a Suncorp Mobile Lender for some guidance.
An estate agent
If you’ve visited an OFI for the property (an open for inspection, or open house) then you’ve probably met the estate agent representing the property before, and spoken to them to get the paperwork needed for the property. This agent represents the seller and their needs.
A solicitor or conveyancer
A conveyancer is engaged before you get to auction to make sure your paperwork is correct and doesn’t have any unforeseen conditions on the property.
People you’ll meet at the auction
This is the lead agent on the day. The auctioneer will start the bidding, control the bids and rally the excitement in the crowd. Hosting an auction is a skill, and the auctioneer knows how to drive bids higher, read the crowd and get the sale finalised.
I.e., your competition. These people are also bidding on the property, and probably want a win as badly as you do. Don’t let them sway you. Stay focused on your maximum price and your goal. Some buyers won’t come in until the very last moment, so be prepared to have some late interest, or even some bidders on the phone.
A buyer’s advocate is a professional property purchaser who represents their clients in an auction. Mostly very experienced, buyer’s advocates can also get a good read on the crowd and are there to get their buyer the best deal.
These people work for the estate agency, and are often estate agents or assistants. They’re placed strategically in the auction crowd to take a record of the bids and are there to remind you of where the bidding stands. If you get lost or confused during the process, or want to make a bid and aren’t being seen, call out to one of these people for some help. They’re there to make sure everyone is heard so that the seller can have the maximum amount of offers.
Ready for the next step?
Nicole shows you what happens at the end of an auction.
- My experience buying a house at auction
- Professional services available to the home buyer
- What are the inspections that I might need?
Nicole Jacobs is founder and director of Nicole Jacobs Property and a licensed REIV estate agent. Nicole is passionate about helping people find their dream property and regularly appears on Channel Nine’s The Block as a buyers advocate. With nearly 20 years business experience, Nicole is a big supporter of women in real estate and empowering them to achieve their goals.
Information is intended to be of a general nature only and any advice has been prepared without taking into account any person's particular objectives, financial situation or needs. You should make your own enquiries, consider whether advice is appropriate for you and read the relevant Product Disclosure Statement or Product Information Document before making any decisions about whether to acquire a product