How does it work? I need the details in the simplest form. Example; a property has a starting bid of 50, 000. I have a maximum amount that I wish to bid. Do I bid my maximun as my first bid? Is there some kind of step progression that proxy bidding implements? Please provide me with any information that you think will help me. Thanking you in advance……Larry
Hi, Larry. Thank you so much for your question. The exact nature of proxy bidding will depend on the auction. Some auctions require an in-person proxy to bid on your behalf while others allow the auctioneer to bid on your behalf. In general, however, you will provide your proxy your maximum bid and they will bid on your behalf – up to that amount.
For example, if your maximum bid for a house is $200,000 and the current high bid from the live auction is $100,000, the auctioneer will raise it to $101,000 on your behalf and then open the floor to new bids. Bidding will continue that way until your bid wins or bidding goes above $200,000 and bidding continues without you.
For more information on how to buy a house at a real estate auction, check out our article here: https://fitsmallbusiness.com/real-estate-auctions/
Best of luck,