Bidding 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.
Buyer's agents are licensed to bid at auctions on your behalf, negotiate with real estate agents, or can guide you through the process. Consider getting a step up over the other buyers by employing a seasoned professional, after all they do this every day. Removing the emotion out of the process can help you know when to hold, and know when to fold!
4 Tips To Being
Successful At Auctions
1. Be Prepared
3. Have The Right Timing
2. Know Your Location
4. Know The True Value
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.
Know Your Location
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.
Have The Right Timing
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 (how quickly/slowly 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.
Know The True Value
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.