Buying

How Do Online Auctions Work?

October 13, 2020

All precautions are being taken here at Reliance to ensure the health & safety of both our staff & clients.

Due to the pandemic, we are doing things a little differently while still providing you with above and beyond service.

Thanks to online programs and apps like Zoom, we have the technology to allow for online Auctions. These Auctions work exactly the same way as a public auction only from the comfort of your own home.

Using Zoom it allows the auctioneer to not only call the auction live virtually, but we are able to see the bidders actively bidding no matter their location.

It’s just a matter of pre-registration for the auction to obtain a bidding number & downloading the app & logging onto a Meeting ID provided for the auction and inputting their bids on their mobile, that then is registered back to the agent which then we register that through the auctioneer as well.

We are here to help, below you’ll find some of our FAQ, answered!

How would Purchasers Bid?

Purchasers 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 buyers can participate in the auction?

There are multiple ways. You can register to bid and ‘attend’ the auction via zoom, where you can watch the auctioneer in action.. 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 Purchasers 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 and 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 $10,000 prior to the auction. In the case you are the successful bidder, you will be required to pay a $10,000 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 do I make a bid?

If you are interested in making a bid on a property, you have several options:

– Un-mute yourself and vocalise your bid
– Use the chat function to submit a bid
– If the auctioneer nominates a rise, put your hand up so it is visible on the screen

After the Auction

Once the property has been sold, we politely ask all parties to leave the chat session, apart from the winning/highest bidder.

Once all other participants have left the online auction, the next steps will be discussed and the contract of sale will be prepared and emailed to the purchaser for signing via Docusign/Adobe.

The deposit is then to be paid via an EFT transfer to the Reliance Real Estate Trust Account

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