Proxy bidding is when a person wishes to inform an auctioneer prior to sale of a price they are willing to pay for an item. During the sale the auctioneer will take bids and increase them according to the increments that the proxy has set until the predetermined price has been reached. If the bidding does not go above the proxys’ set price then the property becomes theirs. Lets say the proxy is either watching online or has a telephone link they can decide to increase their bid if their limit has been reached or they can leave the auction. What is Proxy Bidding

Proxy Bidding for Real Estate.

Ordinarily people associate proxy bidding for online items via websites such as Ebay. However, if you want to bid for a home at auction you can also do this by proxy. The person who will bid on your behalf must have written authority from you to do so and must themselves then be a registered bidder at the auction.

It is wise though, to also attend the auction yourself in person or at least maintain a mobile phone hook up.

The positive side of using a proxy to do your bidding is that it reduces your emotional risk of getting carried away and provides a final fixed price that you are prepared to bid to.

Tagged: