Everybody loves a good auction. It’s actually rather entertaining to watch and see what happens at the local auction and can be quite enjoyable. Until the day comes that you have to buy at auction and then, for many people it’s a terrifying event.
Here are Seven top tips
1. Know you limits
Before you go to the auction, decide the absolute top price that you are willing to pay for this property. This may be different for every property and most certainly needs to be a figure within your budget.
2. Walk Away
When the property gets to your limit – walk away. If you limit is $525,000 then if you have to place a bid at $526,000 then the property is too much and its time to walk away. Even if you could spend $575,000. Know what your walk away figure is. And when you get to that figure actually walk away from the auction – walk about two houses away – remove yourself from the temptation to go just one more. When the auction is over you always find out the end result.
3. Just speak up
Bidding at an auction is easy, just raise your hand and say your price. It’s that easy!
4. Be confident.
The more confident you are – the more fear you will put into the other people. When people are nervous they are looking at and listening to you – their enemy – and if you appear confident then you will have won half the battle.
5. Speak clearly.
You may not realise that you have the ability to do this, however speak in a bold confident manner. This includes speaking in a deeper and louder voice. It’s the kind of voice that you might say ‘no’ to your pet dog.
6. Decide your strategy before you go to the auction.
As a guide, I always like to put the first bid in. When a property is advertised with a price guide I will often say the lowest figure. For example I was at an auction recently. The property was advertised $490,000 – $540,000 so I put the first bid at $490,000. The auctioneer will usually say you’re a bit low and I always say ‘that’s what you advertised!’
7. Be the highest bidder.
Be the person that makes the last bid. If the other person has more money and they are prepared to spend it then there is not much more you can do. However, make it your goal to be the last bid. When a property is passed in to the highest bidder that means the vendor must negotiate with you.
Always remember that the property is ‘on the market’ as soon as the auctioneer calls for bids. You can wait until it’s declared that the reserve price has been reached, that’s when the auctioneer says ‘on the market’ but they don’t have to say it. In fact the reserve is often met with the first bid and the auctioneer waits until it’s the ‘right time’ to reveal that it’s on the market.
If you are about to buy a property at auction from another agency and you would like some further assistance then please contact out office. We may be able to provide a buyer advocate service which includes bidding at auctions. We would love to learn about your auction strategy please share it with us.