How to Win at Auction
For the biggest purchase of your life, most bidders at auctions are inexperienced and emotional.
This can be very dangerous because auctions are a high pressure battlefield where you risk spending more than you need to.
What many bidders don’t realise is Auctions are about tactics, not luck!
1. BE PREPARED
You must have a thorough understanding of the bidding process, how motivated the vendor is to sell, the number of bidders and their price expectations, and recent sales in the area of similar properties.
All these factors will impact the result of the Auction.
Whether the Auction is located on the property or at an Auction house will change your approach to bidding. When we speak of location this also refers to your physical location. It is important to know the best tactical places to stand when bidding at auction. This means the proximity to the auctioneer, other bidders, the property, and which direction you are facing when making a bid. Don’t forget, your stance and even appearance are important factors to consider when bidding at Auction.
One of the biggest mistakes an inexperienced buyer can make is bidding at the wrong time, or at the wrong price increment. A strong tactic which professionals employ is the timing of bids. This means understanding whether you want to be the first bidder, the timing required between bids (how quickly/slow you place your bid after the previous bid), how to bid when the auction is slowing, and your exit strategy. Professionals employ these tactics to get a step up above the other buyers.
4. EXPECTED SALE PRICE OF THE PROPERTY
Often Real Estate agents underquote the expected sale price of properties in order to draw more attention and interest in a listed property. There are two scenarios if you become emotionally attached to the property believing it is within your price guide – you can win at auction and may end up paying more than you can afford, or If you don’t win, you’ve wasted time and effort looking at properties you cannot afford.
In order to understand the best property for your lifestyle and budget, you should have a chat to a Buyers’ Agent who can guide you in the right direction.