31st March 2020 / Sarah Lowry: What You Can Expect from an Online Auction

An online auction provides an experience as close to an onsite auction as you can get. Aside from the way you participate, by accessing an online auction 'room', everything else is essentially the same as what you would experience at an onsite auction.

The auction is conducted by the same rules, it is transparent, there is two-way communication and the potential outcomes are the same. The property may sell under the hammer to the highest bidder, may pass into the highest bidder, or be passed in on a vendor bid. If the property sells to the highest bidder, contracts will be exchanged and a deposit paid. If passed in to the highest bidder, the agent will negotiate exclusively with this party. If passed in on a vendor bid, the agent will proceed to negotiate with all interested parties.

I am interested in a property that has an online auction. How can I bid?

Fantastic! If you are interested in a property, please contact the listed agent and provide your name and e-mail address. You will receive a comprehensive e-mail outlining how you can register to bid, and how you can participate in the process on auction day.

What are the options I have to participate in the auction?

There are multiple ways. You can register to bid and 'attend' the auction via a Google Hangout, where you can watch the auctioneer in action. If you don't have a smartphone or don't feel comfortable using this option, you can also 'dial in', by calling the number provided in the registration e-mail. There is a pin code you will need to enter in when using this function. Finally, you can also visit a link that allows you to watch the bids as they progress, which can be done in conjunction with either of the two options outlined above.

The auction rules will be read out as normal by the auctioneer and can also be accessed by bidders when they register. The Vendor's Statement/Section 32 can be requested from the agent for your review prior to the auction as normal.

Are the rules of an online auction any different to the usual auction method?

No, the rules are the same. For example, if you're successful on auction day via an online auction, no cooling off applies.

How do I sign a contract if I'm the successful bidder?

We are fully equipped with offsite auction contract signing, which means our vendors and purchasers can sign contracts from anywhere in the world! Deposit and residual amounts are automatically calculated, as well as settlement terms. You will receive the contracts via e-mail to sign and an executed copy is automatically sent to our office, the vendor, purchaser ad each party's conveyancer.

How do I pay the deposit if I'm successful?

You will need to ensure that you have a daily EFT limit of at least $5,000 prior to the auction. In the case you are the successful bidder, you will be required to pay a $5,000 deposit immediately after the auction, with the balance payable ASAP. You will then need to immediately email a copy of the deposit receipt to the agent.

How can I arrange an inspection of the property prior to the online auction?

Contact the managing agent of the property. You will receive a short questionnaire via e-mail or text message prior to your inspection to fill out. All inspections are by private appointment, in line with current restrictions in force. If you wish to attend the inspection with a partner, family member or friend, you will need to inspect the property one at a time, in line with current social distancing rules, i.e. one person can wait in the car whilst the other is inspecting.