FAQ

Sometimes, an agent, or auctioneer, may offer you a comparative market analysis (CMA). This is a document that offers you information about what similar properties have sold for in the same area. They can only give you this document with the seller’s approval.

If you want to make your own independent enquiries you can instruct a valuer to prepare a valuation of the property prior to the auction.

Yes. In practice many sellers, not all, consider offers prior to the Auction Day. However, the acceptance of offers prior to auction day is a decision made entirely by the Seller. For the best chance to have your offer accepted prior to auction, ensure you have undertaken all your research and due diligence to enable you to make an offer under auction conditions.

Definitely, there can be many reasons why an offer is not accepted prior to auction. It may be that the seller’s price expectation sits above the market’s expectation, or perhaps your offer is under-estimating the value of the property.

Regardless, after the seller has had the opportunity to see the full marketing campaign and see the interest in the property on auction day, both parties will often re-evaluate their expectations come auction day.

You need to request whether the Seller would be prepared to alter the auction terms as soon as possible prior to the auction.

It is important that you do not wait until Auction Day, as this may be too late. The seller must agree upon any variation before you can bid. If agreed those same terms need to be offered to all bidders. It is not compulsory that the seller/s accept any variations.

Although not compulsory, it is always advised that you have a solicitor look over the contract for sale before you bid. Residential properties sold at an auction are not subject to a cooling off period. If the gavel comes down and you’re the highest bidder you are bound to go through with the purchase

If you instruct a solicitor to advise on the contract terms before the auction, they will explain your legal obligations and they may make you aware of matters that you had not previously considered. They may also assist in negotiating terms with the Seller’s agent and solicitor.



You can register to bid when you arrive at the auction, or visit our 'Register to Bid' page where we will guide you through the process to ensure you have the correct registration form in place. Registering early will save you the trouble of registering on auction day giving you extra time to plan your strategy.

In Queensland, all bidders must be registered, the auctioneer may register a person as a bidder only if the person has provided their name and address and satisfactory evidence of their identity. The auctioneer is required to keep a register of all bidders at the auction in accordance with Queensland Government regulations.

The best form of identification for auction day is an Australian drivers license. However, please have a look at our ‘Proof of ID Checklist” for more forms of satisfactory identity.

No, there are alternatives such as:

  • Give authority for someone to bid on your behalf.
  • Bid via telephone.
  • If the auction is live, you can bid over the Internet.

No, you can organise for someone to bid on your behalf. Any person bidding on behalf of another person must provide the auctioneer with a copy of their written authority before the auction, otherwise the bidder will be taken to be acting on their own behalf. Acceptable written authorities are:

  • Power of Attorney – Outlining their authority with the document.
  • Bidding Authority – Letter of Authority to bid for and on behalf of another person
  • Bidding Authority - Letter of Authority from prospective buyer to convey telephone bids at auction

It is important that one of these authorities are provided to the auctioneer, otherwise the bidder will be taken to be acting on their own behalf. If you register through realbid and the correct information is entered these authority to bid forms will be prepared for you.

Yes. However, any person bidding on behalf of another person must provide the auctioneer with a copy of their written authority before the auction, otherwise the bidder will be taken to be acting on their own behalf.

If you organise for someone to bid on your behalf, they must have a letter of authority, providing your name, address details and provide satisfactory evidence of your identity to the Auctioneer in order to register you as a bidder. If you register through realbid and the correct information is entered these authority to bid forms will be prepared for you.

If the correct authority is in place, the auctioneer can sign the contract on your behalf.

Unless otherwise stated he standard ‘Conditions of sale by public auction for real property in Queensland generally include a condition that: “The seller and the buyer agree to sign all documents and do everything else necessary to transfer the property to the buyer. The seller and the buyer each appoint the auctioneer their agent to sign the Contract of Sale on their behalf. This appointment is non- revocable. “

No. Unless otherwise agreed to by the Seller the REIQ ‘Conditions of sale by public auction for real property in Queensland” states that:

  • A cooling off period does not apply.
  • The finance clause has been deleted from the Contract of Sale
  • The Building, Pest Inspection and Pool Safety clauses have been deleted from the Contract of Sale

Yes. However if you are bidding on behalf of a Company, Trust or Super Fund you will need a letter that authorizes you to bid on the entity’s behalf. If you are the sole director of a company you will still need this letter. The identification of the company will be the ABN and you will need to specify who will be signing the contract on behalf of the company and in what capacity they will be signing eg: Sole Director.

If this is the case the auctioneer will generally have a discussion with you prior to the auction informing you of that fact. The auctioneer will generally encourage you to bid so negotiations can take place under auction conditions.

Once you have placed a bid, if the reserve is not reached the auction will typically be paused and the agent or auctioneer may ask you to increase your own bid. This is a common occurrence in today’s market so don’t feel uncomfortable about it.

It simply means that your bid may not be at a price the seller will accept. In this situation you will have the opportunity to negotiate and/or increase your bid to a level that the seller will accept.

It is important to note that if you increase your bid to a level that the seller will accept, the auction MUST be re-opened prior to selling the property under the hammer.

A high percentage of sales at auctions have been done so with just the one bidder!

The reserve price is the minimum sale price that the seller will accept. The seller sets the reserve price in writing with their agent/auctioneer before the auction. A seller doesn’t have to set a reserve price. In most circumstances the Seller will choose to have one because without one the property is ‘on the market’ from when the bidding starts.

The auctioneer is allowed to tell you whether or not the seller has set a reserve price. However, the auctioneer must not tell you the reserve price itself. Once the reserve price is reached during bidding (or no reserve price is set), the property will be ‘on the market’.

Once a property is on the market, it means the auction must result in a sale. The winning bidder must purchase the property, and the seller must sell.

The auctioneer does not have to announce when a property is on the market. It is a good idea to keep this in mind if you are waiting for the auctioneer to announce the property ‘on the market’ before you bid, as it may not happen.

If an announcement is made that the property is on the market, it must be truthful. Once a property is on the market, it means the auction must result in a sale. The winning bidder must purchase the property, and the seller must sell.

In Queensland, auctioneers can accept ‘vendor’ (seller) bids, but only up to the reserve price. Before the bid reaches the reserve price, the auctioneer can:

  • bid on behalf of the seller
  • accept bids from the seller (or their representative).
The auctioneer must announce if a bid is a vendor bid. If a vendor bid is announced, you know that a reserve price has been set, and that it has not yet been reached.

In Queensland, auctioneers can place/accept Unlimited ‘vendor’ (seller) bids, but only up to the reserve price.

A dummy bid is an attempt to raise the bidding, without disclosing the bid as a vendor bid or, after the reserve price has been reached, by:

  • the seller
  • their family or friends
  • the auctioneer
  • any other 'planted' individual.
Dummy bids are illegal.

If you are the highest bidder and the reserve price is not reached, the agent or auctioneer may ask you to increase your own bid. This is a common occurrence in today’s market so don’t feel uncomfortable about it.

It simply means that your current bid may not be at a price the seller will accept. In this situation you will have the opportunity to negotiate and/or increase your bid to a level that the seller will accept.

It is important to note that if you increase your bid to a level that the seller will accept, the auction MUST be re-opened at that bid to give all registered bidders a fair opportunity to bid again.

No. In Queensland the highest bidder does not have the first right to negotiate with the owner.

When a property passes in at auction, it will be then made available to the whole market including conditional buyers. Everyone will then have equal opportunity to submit an offer.

So, if you can bid under auction terms and conditions, give it your best shot at the auction as it is the most transparent way to buy and, in most cases, less competitive as it is restricted to Buyers who do not require conditions above the auction sale conditions.

No. If the property doesn’t reach the reserve price, you can negotiate with the seller after the auction. If this leads to a sale within 2nd clear business day of the auction, the contract will not be subject to a cooling-off period.

If you reach an agreement more than 2nd clear business days after the auction,the contract will be subject to a cooling off period.

When a property passes in at auction, it will be then made available to the whole market including conditional buyers. Everyone will then have equal opportunity to submit an offer.

A large percentage of properties will have conditional buyers (buyers that can’t bid under auction terms and conditions) waiting and hoping that the property passes in. If you can bid under auction terms and conditions, give it your best shot at the auction as it is the most transparent way to buy and, in most cases, less competitive as it is restricted to Buyers who do not require conditions above the auction sale conditions.

If you are the successful bidder, you must sign a contract immediately.

There are very serious legal consequences if you cannot settle the sale on time that is why you should ensure that you are able to complete the terms of the contract prior to bidding at the auction and if you have any doubts you should seek legal advice:

© 2017 Realbid Group

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Realbid has been created to empower property seekers with the knowledge and understanding of the auction process. Our transparent approach will allow you to bid at auction with confidence and give you the 'auction edge'

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