With the summer selling season in full swing, many buyers are experiencing the stress of taking part in an auction.
The pressure and competition of the moment can be confronting for some buyers – there’s a lot of money on the line, not to mention the lifestyle choice that’s about to be made.
For those who’ve never tried to purchase at auction, it’s a good idea to check out a few and watch events unfold.
Pretend you are a bidder, and see how you feel when the auctioneer works the room to achieve the best possible price.
Across Australia, more than 30% of our market goes under the auctioneer’s hammer. And that percentage is much higher in the Sydney and Melbourne markets. So, honing your bidding skills is essential whether you’re upgrading, buying your first home and starting an investment portfolio.
Below, we’ve offered some great tips on how to handle the moment.
Good luck with your bidding!
Arrive Early: Don’t arrive hot and flustered just moments before the auction begins. You should use your early arrival to talk to the agent and check-in on price expectations.
Crowd-Watching: If you’re early, you can size up the other bidders as they arrive. Do they look tense, or do they give off the vibe of property developers on a mission? You can never be certain about people, of course, but trying to figure how the auction might play out is a useful exercise.
Take a Number: Make sure you register and get a number so you can be identified when you bid. Also, make sure the auctioneer can see you. Conversely, don’t bid with an accidental sudden movement!
Whisper: If you’re with your partner or a friend, don’t talk out loud about your approach or spending limit. Keep your intentions and strategy low-key.
Bidding Patterns: Auctioneers and experienced bidders have their own strategies. Increments of bids can change. Some bidders may throw in a huge bid to blast away the competition. Others insist on excessively small bids to change the pattern of the auction to their own advantage. So pay attention to what’s going on.
Key Phrase: “On the market” is the phrase everyone wants to hear at an auction. It means the bids have hit a threshold at which the owner is prepared to sell. Whatever happens in this scenario, someone is buying the property.
Quitting Time: Know your limit. Recognise when you’ve hit the outer-limit of your budget, or you believe property no longer represents value beyond a certain bid level. Let others pay too much for it.