Auctions can be daunting. We are regularly asked for some guidance, so for everyone’s benefit, a list of best auction tips:
1. Prepare yourself by attending some auctions to observe the atmosphere, auctioneers’ techniques, and various bidding strategies at work.
2. Arrive early, and position yourself with the best possible view of the auctioneer and the other bidders. Ideally you will be able to see all parties within your standing field of vision.
3. Do not allow yourself to be distracted during the auction. Turn the phone off, no children, pay attention to what matters.
4. It’s OK to make a low bid to start the auction, but if you do, follow with pause, and wait. Look for the other bidders and watch how the auction unfolds.
5. Unless the property looks like it’s going to be passed in, don’t bid again until the reserve price has been met and it’s closer to the end, when the bidding has slowed.
6. When you bid be clear to the auctioneer. Projecting confidence and determination in the tone of your voice and the raise of your hand will assist to psych out the other bidders.
7. As bidding continues, enjoy the game. It is OK to pause at times to slow the auction but intersperse that with making counterbids fast and assertive. Create the perception that you don’t have a limit. Agonising over every bid is a definite sign of weakness and only encourages others to bid further.
8. Do not try to make small bids too early – it is a sign you are at your limit. Being confident with larger bids to push others out early is more likely to win you the property within your price range than is showing uncertainty and weakness.
9. Give your competitors a reality check by calling out your bid in the full price, not the increment (say “$756,000” instead of “$1,000”).
10. If it’s going to pass in, it’s a big advantage to be the highest bidder, as you’ll usually be given the first opportunity to negotiate.
11. Know your numbers. Only bid at auction after confirmation from your broker as to your financial position. Stick to your walk-away price. Short-lived disappointment is better than long-lasting remorse.
Remember at the auction hammer fall, it is an unconditional sale. If you want ‘subject to finance’ auction is not for you.
Whether buying before auction, at auction, or via private negotiation, keep in mind that fate will play a hand in you finding the right property. If you are genuinely looking at properties with market value in your price range, you do not need to be miserable when another bidder pays more, and you miss out. It was not meant to be! Keep looking, there are a multitude of homes, another will come along.
You will find success in time, and every auction becomes a learning experience!
For assistance on the lending side of buying your home: Integrity Finance Australia has been serving the community since 2006. If you have any questions or want to know what your options are with your borrowing capacity or your home loan, then please email support@ifafinance.com.au , call us on 03 9511 8883, or contact your personal broker directly.