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Bidding / buying at auction in Melbourne Vic

Discussion in 'The Buying & Selling Process' started by bythebay, 18th Jul, 2015.

  1. bythebay

    bythebay Well-Known Member

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    hi guys

    I'm based in nsw. Did a fly in fly out weekend of inspections and auction watching in Melb a few months ago.

    In nsw all bidders have to be pre registered ie agent records your drivers license details before giving you a bidder number. You can't bid without a bidder number.

    Am I correct in thinking in Melbourne you don't need to register to bid at auctions? Assuming I've done my dd (building report etc) can I literally just turn up to the auction and bid?

    Is there anything else unique / different to nsw auctions I need to look out for?

    Thank you!
     
  2. OC1

    OC1 Well-Known Member

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  3. Reno Crazy

    Reno Crazy Well-Known Member

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    Yep you don't need to register in Vic, just bring your cheque book. As you are flying in, stay in touch with the agent as sometimes things can be bought pre-auction. Although atm that is rare. I haven't ever bid or bought in NSW. However I think that vendor bidding is different. There is no maximum number of vendor bids in Melbourne but they do declare a vendor bid, I won't get into tactics as everyone has there own, but I wouldn't bid after a vendor bid unless there is other ppl bidding and negotiate once passed in. Hot market in the east and not likely to be passed in and probably no VB required, good buying still in the north and west. Good luck
     
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  4. bythebay

    bythebay Well-Known Member

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    How interesting
    thank you!
     
  5. Big Will

    Big Will Well-Known Member

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    The article doesn't make sense.


    The buyer, who said he was aware of the attraction of the zoning, made the morning's only bid of $1.01 million after the crowd of about 80 onlookers failed to provide him with any competition.

    The property was passed in, but the lone bidder negotiated a final price of $1.23 million with the vendors – a family who had held the property for the past 70 years. They had a reserve of $1 million, according to Hocking Stuart agent Andrew Panagopoulos.


    How did he negotiate when he beat their reserve? Even if reserve was 1.1M why did he pay 1.23M?
     
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  6. Lil Skater

    Lil Skater Well-Known Member Business Member

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    If reserve was $1m, why was it passed in?

    You don't need to register or be in attendance to bid at auction.
     
  7. bythebay

    bythebay Well-Known Member

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    yes very strange that one!

    still trying to get my head around Melb auction process

    based on our observations from Melb auctions last time, we recall hearing auctioneer say FINAL bidder has the sole/exclusive right to negotiate with the vendor on final price (if the final bid does not reach reserve). How long is this window? 24hours?

    I think that may have been the reason why we saw someone bid after a vendor bid (actually there were 2, 1 after another!), to secure the right to negotiate with the vendor ... understand vendor sold it to that bidder for 15k more later in the day ...

    we want to try to pay 5% deposit on the day if possible (rather than 10%), understand it's something we need to negotiate with the agent prior to auction. would you get the agent to confirm agreement in writing or is a verbal agreement sufficient?

    thanks everyone in advance
     
  8. Big Will

    Big Will Well-Known Member

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    The final bidder has the first right of refusal at the reserve price. If they say negotiate it is up to interruption however it will depend on how many bidders if there was 10 bidders and the bid was $20,000 below reserve they will likely say this is the reserve take it or we will go talk to the other bidders. That is negotiating haha.

    Although if there was only 2 bidders and 100k off reserve then they will be more likely to work with the last bidder unless the person goes ill go up 10k and that is it and remains firm.

    TIP - If you are the last bidder do not go inside the house, negotiate outside the house that way you can see how many buyers (if any) are waiting around. Plus you can make queues of walking closer to your car when you are getting close to your limit without just walking out.

    RE 5% deposit, you are best to get in writing however I haven't heard of any stories of people changing it after on a verbal, although I am sure there is. The deposit at 5% is as good as 10%.
     
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  9. JonoD

    JonoD Active Member

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    I've purchased at auction in both Vic and NSW, found the experience pretty similar.

    The last place I purchased in VIC I bid via phone, agreed 5% via email prior. Paid posit via EFT on the Monday, no problems
     
  10. Fargo

    Fargo Well-Known Member

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  11. S.T

    S.T Well-Known Member

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    Hey @JonoD , who was on the other end of the phone bidding? Was it a Buyers agent?
     
  12. JonoD

    JonoD Active Member

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    No, not a BA. A friend ( though I would have need happy bidding via the real estate agent who was on site, or one of there staff). Had 4 parties bidding ( I 'won'