Jess from Burleigh heads has asked a question about Auctions…
[blockquote]”I attended one on the weekend to get the feel of it and the Auctioneer put in a vendors bid, what is that and how does it work? I’m looking to buy but the whole process of Auctions scares me!”[/blockquote]
Jess – That’s a great question and the vendor bid issue is one that stumps and confuses many buyers. In essence a vendor bid is a bid placed by the Auctioneer on behalf of the seller, and is done in lieu of competitive bids from registered bidders. The purpose of a vendor bid is either to start proceedings, or ensure the bidding is closer to the price range in which the seller would consider selling the property. The good news is that the legislation means that a vendor bid is clearly disclosed and there is no confusion for the bidders.
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Auctions can be a pretty nerve-wracking experience for all parties involved but the big advantage you have as a buyer is that everything is totally transparent at an auction, done in front of everyone’s eyes. Generally in a private treaty negotiation is done in private and secret and although it may be daunting to yell your price out in front of everyone on auction day it gives you a competitive advantage to see exactly what is occurring live in front of you. Be nervous, but be excited and bid strongly!