Rule of thumb in Auction increments when bidding??

tenke

Sorry I forgot... when they begin the bidding in 5k chuncks when there are many parts interested... how do they know that in advance, if not until people begin bidding??

Must people express interest beforehand at the venue???

Sorry so many questions:o

Doozergirl

tenke wrote: »

Also how will that influence the surveyor's valuation? which parameter will he have to value the property? guide price or my intended price when asking a possible mortagage?

Hope this makes sense somehow ....:o

Before you go to the auction you have to decide your maximum price. That is what you would give Halifax as your purchase price. You know you're not prepared to go over that and if they downvalue it from there, you know how much they think it is worth.

This is part of the reason why it's mainly cash buyers at auction. You have less to worry about.

Doozergirl

tenke wrote: »

Sorry I forgot... when they begin the bidding in 5k chuncks when there are many parts interested... how do they know that in advance, if not until people begin bidding??

Must people express interest beforehand at the venue???

Sorry so many questions:o

They can call it. They know the reserve, they can guage the popularity so if a few people are putting their hands up for the first bidor subsequent bids then they know it is popular - they have to get it down to one buyer so they can move faster to eliminate more. Potential purchaser will themselves start to draw the increments smaller as they waiver - the auctioneer will either persuade them with smaller increments or if they are seasoned they will ask the increments to be cut by making a gesture which I'd find hard to describe over tinternet!

Or it goes wrong when you get some idiot who insists on keeping the increments low. I was at one of the big London auctions watching a house get bid from 50k to 116k in 1000 increments. That was so boring, especially that you can get 200 lots in a day and everyone is waiting!

It's not really relevant though. if you're lucky then it will get to small increments as the others waiver and you keep on, otherwise it just sails right by the price and you were never in with a shot.