A View from the Parsons Son & Basley Rostrum

Bid whilst you have the chance to do so as otherwise trying to be too clever will cost you dearly in the long run!

From an auctioneer’s point of view, it is extremely frustrating when despite the fact you know they are in the room, buyers do not bid for the property they have come to buy. However, from the buyers’ point of view, how frustrating must it be for them when they find out that post-auction they have actually paid significantly more for the property than they might have done had they bid for it during the auction itself!

This actually happened recently whereupon the lot I am referring to did not receive any bids during the auction itself however, immediately after the auction had finished, some half an hour later, not one but two buyers approached me advising they wished to make an offer on the property whereupon I had no alternative but to ask them both to write down their best and final bids. Naturally the higher offer won the ‘mini post-auction’ auction and the buyer exchanged contracts there and then. However, the price paid was significantly more than the property could have been purchased for had the buyer raised their hand and made a bid during the auction itself, and by significant I really do mean significant! The under bidder who had unfortunately lost out also made a written bid for an amount much higher than the reserve had been set at whereupon had they instead made a bid during the auction, not only would they have purchased the property but they would have done so for a lower amount!

The price paid was significantly more

After explaining this to the under bidder and asking why on earth they did not bid during the auction, I was informed that in the event the property did not sell they were of the opinion they would be able to ‘buy it cheaper’, whereupon instead they actually lost it for more than they could have bought it for! I have no doubt the successful bidder was also of the opinion that post-auction they would have been able to buy the property for less. However again, such a theory seems to have backfired.

My message to auction buyers is this, please, don’t try and be too clever and manipulate the system as simply put it usually backfires on you. When you have the opportunity to bid for a property then bid as if you don’t, you are likely to either lose out completely or pay much more than you needed to!

If you have a question about buying or selling at auction do not hesitate to contact the Parsons Son & Basley auctions team on 01273 274010