Ultimately it depends on your auction strategy and property objectives. Additionally, it depends on the level of bidder competition and the auctioneer.

So we are entirely clear about what an increment is when discussing auction, please see below:

1. $400,000 is where the current bid is.
2. If you wish to offer $20,000 – this means the increment is $20,000
3. $420,000 – where the total bid will end up after your bid.

TIP:
Often making bidding increments more than the amount asked by the auctioneer can intimidate other bidders. Sometimes a difficult bid to calculate (eg. $11,150), which is in excess of the requested bid (ie. $10,000) can confuse the auctioneer, either causing them to slow down their acceptance of bids, or make an error in calculation. This can also slow momentum and shake the auctioneers confidence.

The standard Law Society of the ACT contract specifies (Terms Of Payment) that the deposit may be paid by cash or cheque.

If you are hoping to pay the deposit using EFT, it is a commonplace for an agent to ask for cash or cheque in addition to an EFT payment of 5% or 10%.

In the scenario that you are successful in buying a property for $1,000,000 and you pay a 5% deposit with 10% at risk, and you have planned to pay via EFT then our advice would be to also bring a cheque of cash to the value of $1000.

The agent would then amend the section 52.3.1 of the contract stating that the buyer is paying $1000 and will pay the balance of 5% ($49,000) within five days. Both buyer and seller must initial the contract amendment.

Please speak to the agent about minimum payments on the day before auction. If you have engaged us to represent you and bid on your behalf, we will do this for you.

Yes you should in almost all cases.

To ensure that you maximise your advantage as the only auction bidder consider the following:

• Get to the open home 30 minutes before the auction.
• Watch the registrations to see how many bidders register – to ensure that you are the only.
• If you get there late ask the agent how many bidders have registered and are there any proxy or phone bidders.

Speaking to colleagues in the Canberra auction fraternity the consensus (as of May 2019) was the following:

Breakdown of registered bidders at auction (May 2019):

No registrations: 20%
1 registered bidder: 30%
2 registered bidders: 30%
3 registered bidders: 10%
4+ registered bidders: 10%

This information displays that it is impossible to know how many buyers you are going to be competing with before you turn up!

Irrespective of how many registrations you are dealing with, the seller and you need first to get an agreement with them before you can take the keys.

So if you turn up and want to own the home – bid and negotiate. Bid to a level, yes even against yourself, that you would be comfortable paying to own the home.

Use the tactical advantage which you have as the only bidder to take the home off of the market. Being the only bidder does not mean you are the only buyer.

As your appointed auction negotiator this is where we can really create value for our clients.

About half of the properties that go to auction in Canberra have 1 or no bidders.

Our plan of attack if you are the only registered bidder at the auction is to ensure that you buy at, or below your price. We might do this by:

• Keeping the auction live and open as long as required to help you to achieve your objective price.
• We might need to bid against the seller ten times in differing bidding increments.
• We might need to move 5% above your previous bid.

The golden rule is that the longer the auction is alive, the more likely the bidder is going move their price upwards, and the seller is going to adjust their price downwards.

But if you want the home and it represents value to you then whatever you do, keep the auction alive and open with the mission to exclude any buyers getting involved post-auction.

Rarely if ever will the seller take less than the final pass-in bid. Generally due to the pressure of auction, the sellers re-calibrate and revise their sale price by 1-3%  above their take price at auction.

So if you're the only bidder, don’t worry about your neighbours in the crowd. Set aside the demands of the auctioneer and control the agent in your ear. And whatever you do, block out the new competition by keeping the auction open and alive.

Deposit Bonds are not standard provisions in the Law Society Contracts in the ACT. You can request the agent or seller handling the sale that they are included. If the agent is not responsive then just email the lawyer acting for the seller directly.

What you can do is sign an authority before auction, authorizing your partner to bid and sign the contract on your behalf should you be the successful buyer.

We will discuss this in our tactics meeting.

Having been around property and auctions, you do hear this frequently: “they sold the home before the auction, and we didn’t get a chance to buy it”.

In an ideal world the agent would contact you if they are contemplating taking a pre-auction offer. However agents will often misjudge buyers interest in a property because sometimes they are not clear about their interest or intentions regarding the property.

Sometimes buyers play coy about their interest in owning the home, and agents facing perceived scarce interest pre-auction date decide to sell to the standout buyer. To avoid this:

• If you have an interest in owning the property, tell the agent.
• If you would be disappointed in the home selling exclusively to another buyer before the auction let the agent know (preferably in writing.)

Let the agent know that if they are considering taking a pre-auction offer that you would like to be informed.

In the ACT, buyers are required to pay stamp duty when the title of the property they are purchasing is registered with Access Canberra.

• You self-assess the applicable duty payable.
• You have up to 14 days after settlement to register the transfer with Access Canberra.

Yes you can.

It’s wise to seek a legal opinion on the implications and insurance risks involved if these structures are being sold without being approved however.

Another option is to ask if the owner will have these unapproved structures approved before settlement. This can be facilitated by creating a special condition by either you or the sellers solicitor.

Our opinion is yes.

There is some precedent and documented history about the subject matter of withdrawn bids.

The vast majority of auctioneers would accept the buyers decision to withdraw their bid. However, if the bidder attempts to withdraw the bid on multiple occasions then there is a real prospect of the auctioneer excluding the buyer from further involvement in the auction, and they can legally do this by refusing further bids.

If you make a bid that is the incorrect increment or the auctioneer misunderstood your bid then let the auctioneer know ASAP. If there is quick bidding and your incorrect bid is surpassed then it really won’t matter. But if there is a pause in the bidding just put up your hand and say something like:

“Auctioneer my bid was actually X. Sorry for the inconvenience, if you could please correct it, thank you.”

It’s better to correct a bid rather than withdraw a bid as it provides clarity to the owner and specifically the auctioneer about your intentions.

Our opinion is yes.

There is some precedent and documented history about the subject matter of withdrawn bids.

The vast majority of auctioneers would accept the buyers decision to withdraw their bid. However, if the bidder attempts to withdraw the bid on multiple occasions then there is a real prospect of the auctioneer excluding the buyer from further involvement in the auction, and they can legally do this by refusing further bids.

If you make a bid that is the incorrect increment or the auctioneer misunderstood your bid then let the auctioneer know ASAP. If there is quick bidding and your incorrect bid is surpassed then it really won’t matter. But if there is a pause in the bidding just put up your hand and say something like:

“Auctioneer my bid was actually X. Sorry for the inconvenience, if you could please correct it, thank you.”

It’s better to correct a bid rather than withdraw a bid as it provides clarity to the owner and specifically the auctioneer about your intentions.

Yes, the auctioneer can refuse your bid. If you are not registered at the auction, then the auctioneer must refuse to take your bid.

If you are registered to bid in the ACT, the auctioneer has the right to;

1. Refuse any bid.
2. Decide that the amount by which the bidding is to be advanced.

The question we often get from families attempting to secure a property at auction is “why would the auctioneer refuse our bid as we offered $1,010,000?” It is important to note that the auctioneer is not refusing the $1,010,000 offered, they are refusing the increment that you offered (for example, the $1000 to take the property from $1,009,000 to $1,010,000)

This could be for a number of reasons involved with protecting the seller by controlling the flow and size of the bids.

A properly  implemented bidding strategy can in many cases influence the end outcome by influencing the price which the bidder pays.

This is the just tip of the iceberg on this critical subject. 

There is no minimum time requirement.

The two things that you must do are:

1. Ensure that the auction conditions have been on display 30 minutes prior to conducting the auction
2. Ensure that you have a compliant auction sale agreement that meets ACT legislation and regulations.

If you are selling using the conventional private treaty method and you get multiple interested parties at one time rather than having a non-binding best and final offer process, consider running a 24 hour auction campaign which invites buyers to bid in a fair and transparent process.

The Sale of Residential Property in Canberra is covered by the The Civil Law (Sale of Residential Property) Act 2003.

The regulations outline the standard conditions of public auctions. These conditions can not be varied or changed by agents, buyers or sellers.

Standard conditions for conduct of public auctions of residential property state:

11. If a reserve price has been set for the property and the property is passed in below the reserve price, the seller must first negotiate with the highest bidder for the purchase of the property.

What does this mean in practical terms? It means that if the property gets passed in below the sellers reserve price, they must first negotiate (in almost all cases through their agent) with the highest bidder.

The regulations don’t state how long the buyers right to negotiate exist, or the conditions that would prevail to allow the owner/agent to conclude negotiations with alternate buyers.

In real terms, if the property is passed into you as the highest bidder, and you reject what the seller/agent offers you at their preferred terms, then the negotiations have concluded. This means that they then have the right to open up discussions with other buyers, registered or otherwise.

In most scenarios and auction situations my advice would be to continue negotiation while the auction is live. Generally there is much more pressure on the seller than the buyer.

While the auction is live and you are the highest bidder, you have the control. 

As of May 2018, the following proofs of identity are prescribed to register at auction:

(a) A card or document that shows the name and address of the person and is issued by:
   (i) The Territory, or a Territory authority; or
  (ii) The government or a statutory authority of the Commonwealth or a State; or
(iii) An authorised deposit-taking institution.

Examples for (a):
1.  A rates notice issued by the Territory or another jurisdiction
2.  A bank statement
3.  A tax assessment notice

(b) A foreign passport or a foreign driver licence that shows the person’s name, together with a card or document issued by an entity other than the person concerned that shows the person’s name and address.

Surprisingly, more agents, buyers and sellers do not utilise special conditions to assist in reaching win-win agreements.

The principles of special conditions are that they should be drafted and approved by solicitors. If your solicitor is adamant that you should not entertain any special requirements in the sale agreement, you should seriously consider getting a new lawyer as soon as possible.

If your lawyer is pragmatic and engages your agent to help you to achieve the goal of getting more buyers registered, then the minor investment of a special condition will generally be repaid in spades off the back of increase bidder registrations and anticipated bids.

The short answer is yes. You can ask for an amendment to the proposed settlement date.

This change date should be requested via email with the agent or the seller and ideally before the auction day.

Most contracts provide a settlement date on or before 30, 60 or 90 days. So if there is agreement with all parties you can always bring the settlement date forward and potentially push it back.

If there has been an agreed change, we recommend that you also get the auctioneer to announce the settlement date options before the commencement of bidding. Ensure that it is in writing via text or email.

From a legal perspective  you can absolutely buy a property before the auction and increasingly agents in the ACT are using this as a process.

Practically and tactically how you execute a pre-auction offer can have a significant impact on what you end up paying and the terms that you agree to.

If you are contemplating a pre-auction offer (an offer on the contract) then be sure to contact Auction Advantage.

For a small fee in comparison to the total investment,  we can discuss the best tactics and approaches for you to execute the sale or discover the selling price to be used at auction.

• Please note many agents will not take offers before the auction and it’s standard practice that they will get overriding instructions to refuse buyers offers before the auction.
• Just because an agent/seller won’t take your pre-auction offer before the auction, this does not mean that they won’t accept that pre-auction price or even less on the day of the auction.

Managed and handled correctly, you could save tens if not hundreds of thousands of dollars implementing the correct pre-auction strategy.

In the ACT this is commonplace. People are overseas, interstate, or simply just cannot make the auction for a number of reasons.

In this case you could use a bidding agent, a mobile phone bidding app like https://www.gavl.com/ to help you participate on auction day.

Please note that auctions are unconditional by nature. This means that if you secure the home at auction you are liable for 10% of the value, irrespective of the amount provided on the auction day. Equally you block out and lock out all competition as you will have unconditionally exchanged.

If you do not want to use the agent’s employee or colleague to bid for you, then you can engage someone from our team to assist. If that does not work, you can use apps like https://www.gavl.com. These platforms allow buyers to register and bid online.

If you are bidding remotely ensure that you have resolved:

• bidding authorities
• deposits including pre-transfers into trust accounts
• confirmation of settlement dates
• entities that are buying and structure
• inclusions that need to be added to the auction agreement

There is a whole lot more that can cost you if you don’t get this correct. 

Ideally, you should seek confirmation from the agent before the auction and have them written into the contract then.

If you have just turned up to the auction and have not had a chance to talk with the agent, then you can ask the auctioneer from the floor of the auction what inclusions are included with the sale when they are announcing the contract terms and conditions.

Recently we have had to help two buyers in this situation. The ACT Government introduced the land rent scheme – https://www.revenue.act.gov.au/home-buyer-assistance/land-rent-scheme – basically you don’t pay the full value for the land but part of the Unimproved Value of the Land UV each year.

Only a small number of properties have the Land Rent Scheme applied however it can be advantageous if you meet the criteria that applies in the ACT.

Most agents know little about this and there is only a handful of ACT based lawyers that we would recommend. If you want to buy a property at auction that applies to the Land Rent Scheme please call me for referrals to those lawyers and to discuss some of the issues that you may encounter during the auction process.

Obtaining written clarity if the bids include the discount for the land value is one such dilemma.