risks of bidding at auction over the phone

I cannot attend the auction. Will be oversees.
I would imagine it would be hard to determine what is a vendor's bid and what is a bid from a buyer.

Based on an auction I went to last week, the auctioneer can make it a bit confusing about what is a vendors bid vs a buyer's bid. Of course they would disclose if asked, but I have no way of checking over the phone (yes I don't entirely trust them to tell me the truth - sorry).

Are there any other risks?
Anyone done this?

Thanks everyone

 

Have you considered using a buyer's agent?

 

I'm overseas on the date of auction that's why I'm asking

 

Friend nearby or try to buy before auction?

 

The ba can do the bidding on your behalf

 

Use 2 phones. Get the real estate agent to have one phone line on speakerphone to your mobile so you can hear all the action. The use your landline or another mobile to call a second phone (usually the real estate agents assistant) who will be listening to you and relay your phone bids to the auctioneer.

 

A few years ago I went to an auction where the winning bidder was on speaker phone.

An agent held the phone close to the auctioneer.

It was a townhouse being auctioned and I was standing on the first floor balcony overlooking the auction. The auctioneer made a few wise cracks because of where I was. But I made the crowd laugh when I poked my tongue out behind the auctioneers back lol.

The auction went quite smoothly and the bidder on the phone could hear everything pretty well I imagine.

 

I am not sure of what your overall strategy is. If you bid by phone and win who is going to sign the contract? You have not made this clear.

 

Tbh I don't know. The agent said it's possible. Maybe i sign a blank contract first. You are a conveyancer what is your proposal please?

 

I'm not in the habit of signing blank documents. What if someone fills in the purchase price as $100m?

 

Then i would get a bargain. Poitively geared.

Seriously though idk the solution. What is your advice?

If i do go down this route i will be talking to a solicitor and have a clear plan. I thought others may have done this. People are away all the time.

 

This sounds like the perfect situation for a buyers agent with a bid at auction only service. Might cost you $500 or so, but they will be able to sign the contract on your behalf, and will have your best interests at heart.

 

Having done it once and being successful would personally never do it again. As advised above, get a BA to attend on your behalf or make an offer prior.

 

Can i ask what the issues were?

I'm not sure of the advantages of a BA over using a trusted friend who i will be on the phone to? I plan to set a limit prior as i have seen the properties in vivo. So the only thing is being clear about what is a vendors vs a buyers bid.

There are 2 places I'm interested in on the same day but none that I'm so interested in that i must secure them. 500 per auction is a lot if they go past my limit.

One if the agents says the following just now:

If you are planning to bid from Japan, I can send you the relevant forms to sign and this gives permission for your friend to bid on your behalf and also if you are the winning bidder then the Auctioneer will sign the contract on your behalf.


Can you let me know if the contract will be in 1 or 2 names? If it will be in 2 names, then can you send me both your IDs, as in your Driver’s Licence or Passport, also your postal address. With regards to the deposit, you will have to transfer the amount to the Trust Account immediately after you have bought the property. For this Auction, we will be using a set amount for the deposit and most likely it will be $X.


With regards to your friend that is bidding on your behalf, I will also need her full name to go on to the paperwork as I will have to pass it on to the Auctioneer.

 

I reckon the big danger is the phone line dropping out at a crucial time!
Marg

 

Complete the documentation for your friend or a BA to bid and sign for you- much easier than phone bidding and less risky. You do need a set of eyes on the ground. Also make sure your friend is experienced and a confident bidder ie: they won't get harassed by the circling selling agents during the auction, they know how to negotiate if the property passes in, they can complete bids in the right increments by gaging the bidders etc.
Best of luck!

 

Brisbane being a non auction state for lower/median priced property I've never bid at auction here. But the auctions I've been to have the usual agents whispering in bidders ears. If they tried that with me I'd swat them away like a pesky fly. If that didn't work I'd have a spontaneous epileptic fit and accidently hit a few in the head.

 

Yeah they have multiple agents from the sales team all over different bidders. It's pretty bad

 

You should give a trusted family member or close friend power of attorney to bid on your behalf and give them written clear instructions of what you want them to do, i.e your limit and preferred settlement period.