An auction should rely on genuine competition and a clear plan agreed with the agent and auctioneer.
Know the bidding rules
For NSW residential auctions, the auctioneer may make one announced vendor bid. Dummy bidding is illegal, including arranging someone to bid artificially for the seller. There is no general two-or-three-bids-per-person rule. Separate disclosed rules can apply to co-owners and executors bidding to buy.
Plan for different outcomes
Set the reserve in writing and discuss what happens if the property passes in. A campaign does not guarantee sale by a date or at reserve. The highest bidder may be approached for negotiation but does not gain an automatic right to buy on their terms. Obtain advice before changing contract conditions.
