Arrowtown

What happens on Auction Day

Auctions can be confusing and frightening if you do not know the process.

1. The Call to Auction
The auctioneer will call the auction by announcing that the auction will get underway. This will happen precisely at the time advertised and so if you want to be at an auction, be at least 10 minutes early because the auctioneer will not wait.

2. The Introduction
The auctioneer will introduce himself and the menmbers of the real estate company who are in attendance. He will advise that there are Auction contracts available for inspection.

3. The reading of the Terms and Conditions of Auction.
The auctioneer will read out the formal terms and conditions of auction as follows:

The propery address being auctioned
The Real Estate company conducting the Auction.
The legal description of the property
The date of settlement
The conditions of how the auction will be conducted.

4. The Property Description
Once these terms and conditions have been read out, the auctioneer will describe the property and highlight the features and benefits.

5. The reading of the reserve price.
The auctioneer will take his final written instructions from the vendors and silently read the reserve price. This is confidential and is never disclosed to any bidder or potential buyer.

6. The bidding process.
The auctioneer will call for an opening bid. If this does not happen quickly, the auctioneer will start by making an opening bid himself on behalf of the owners. (This is called a Vendor Bid)

7. The end of bidding.
The bidding process will continue until the proeprty is either sold or pased in. If it is passed in (ie, not sold under the hammer) then the bidders can negotiate with the owner immediately.

8. The close of the auction.
At the end of the bidding process the auctioneer will call the auction to a close.