Pre-auction offers

[Lenaaz]

Oh man, with those questions you should not be bidding at auction

That's an interesting comment, I am curious what made you think so?

I heard that the agency usually markets the property at 20-30% less what they think it will go for. I was wondering whether experienced bidders jump in once it goes above the reserve as the inexperienced ones bid away until they all drop off?

I've never attended an auction but I know about the process and how it actually works.

[DaveW]

Thanks for the advice Davo. I do mostly agree with you, but my thinking was that I could eliminate some of the competition by bringing the auction date forward. Certain people won't have time to do their due diligence etc.

I agree go in early make the vendor think you're their only option.
Some vendors would rather avoid public auctions.
You never know your luck.
If you are buying for investment then stick to your numbers.

[Davo36]

I've never attended an auction but I know about the process and how it actually works.

Okie dokie, best of luck.

[DaveW]

Beware Harcourts Auctions can involve vendor bids.

[Lenaaz]

Thanks! My understanding is that the auctioneer cannot make a vendor bid at or over the reserve price, is that correct?

Who knows what that reserve price is...

[DaveW]

Thanks! My understanding is that the auctioneer cannot make a vendor bid at or over the reserve price, is that correct?

Who knows what that reserve price is...

Yes that's right, vendors bids are only if reserve is not met.
You are practically bidding against yourself.
Just wait for the Auction passes in and if they still want your unconditional bid they will approach you - they may disclose the reserve to you after Auction.