Guide To Bid in Property Auction

Guide To Bid

1. Who May Bid

i. Intending Purchaser who possess a Bank Draft/Banker’s Cheque be equal to 10% and for bumi lots equal to 5% of the Reserve Price is qualified to become a bidder.

ii. Qualified bidder may delegate another to act as an agent or representative in his behalf. The delegate is required to submit a Letter of Authority and NRIC card photocopy of the intending purchaser.


2. What to Produce at The Auction

i. Bring along the NRIC card to qualify to bid and present it for identification and registration.

ii. Important to submit Bank Draft/Banker’s Cheque amounting 5% of the Reserve Price.

iii. Do bring extra fund as Additional Deposit to subsidize if there is increment on the Reserve Price.

iv. Specify your details required in the Bidder’s Registration Form.


3. What to Note at The Auction

i. Always check the specific amount requested and the Bank Draft/Banker’s Cheque are correctly payable.

ii. Unprepared and unattentiveness during call bids will make you lose a probable opportunity.

iii. Certainly do not bring personal or company cheque as Auction deposits.

iv. To be present earlier to avoid disappointment.

v. It is important to listen to the Auction proceeding very carefully to avoid unawareness.

vi. Observe the details provided are correct in the Contract of Sale before endorsement.

vii. Necessary to switch off or vibrate all your cell phones to avoid interruption during auction.


4. Necessary Documents for Bidding

For an individual bidder:-

• A photocopy of his / her NRIC card (both sides)
• Correspondence address
• Telephone contact no

For a Corporation:-

• A certified true copy of the Company’s Memorandum and Articles of Association.
• Form 24 and 49
• Board of Directors’ Resolution

For Agent / Representative :-

• Letter of Authority from the Intending Purchaser
• A photocopy of the NRIC card (both sides)


5. Homework To Do Before Attendance at Auction

i. Obtain the Proclamation, Conditions and Term of Sale from the Auctioneer.

ii. Make necessary enquiries and confirm essential documents to furnish for participation.

iii. Final check out with the relevant Auctioneer before turning up for auction.

Source: 1klassifieds, New Straits Times, July 31, 2008

How to Buy A Property At an Auction

How to Buy A Property At an Auction

Step 1
Research the property. Get the its size, amenities, how much is owned against it, and what is the opening bid.

Step 2
Compare the sales prices of similar properties in the area so you have a good idea of what the property is worth. Compare sales of properties with same number of bedrooms, bathrooms, and square footage.

Step 3
Get financing. Typically, homes at auction require a 5-10 percent deposit for an accepted bid, and the remainder must be in place within a specified period of time.

Step 4
Know your price limit. Auctions work on creating an atmosphere of agitation and excitedness. Don't get swept up in the moment. Know how much you are willing to spend and stick to it.

Step 5
Be prepared to walk away. Don't feel as if you have to buy something. If the deal isn't right for you, it's not a deal.


Source: 1Klassifieds, New Straits Times, May 8, 2009
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