A leading auctioneer says bidders should pay a deposit as part of their registration

first_imgAuctioneer, Justin Nickerson, thinks registered bidders should have to pay a deposit to be part of the auction action. Picture: Zak SimmondsAPOLLO Auctions director, Justin Nickerson, said registered non-bidders are damaging the auction process and should be charged a refundable deposit of $5000 to $10,000 as part of their registration. Mr Nickerson identified non-bidders as parties who register to bid, but never have serious intention of buying unless the property is, “practically given away.” “It’s misleading the seller and also other bidders because other bidders think they’ve got a certain number of people there to compete with when, in reality, that number is significantly less,” he said.Mr Nickerson said these participants don’t raise their paddle and aren’t really of the mindset to buy.More from newsParks and wildlife the new lust-haves post coronavirus23 hours agoNoosa’s best beachfront penthouse is about to hit the market23 hours ago“They just thinking, ‘I still want to feel part of the auction and feel like we’re doing something so let’s register,’” he said.Mr Nickerson said bidders need to take the registration process seriously because it’s the first step of a legal transaction to buy a property.“The money would be held by the agency and, if they were successful in buying the property, it would become their first deposit with the balance five or 10 per cent due,” he said.“I’m a big believer that for buyers it’s an advantage because they’ll know that anyone there who’s holding a paddle has financially invested to do that, which provides transparency — it also adds an extra layer of protection from ‘dummy bidding,’” Mr Nickerson said.Mr Nickerson said vendors have expectations based on registration numbers, so ensuring those registered are serious bidders helps sellers make good decisions. “It will improve the communication between the buyer and the agent and then the agent and the seller which is really what our industry is about,” he said.Follow Kieran Clair on Twitter at @kieranclairlast_img