With auction clearance rates going up in multiple areas around the nation, competition is only getting stronger.
Trying to bid at an auction can definitely be daunting, especially if you’ve never done it before.
However, getting over this fear will open up many more buying opportunities and increase your chances of finding your dream home.
Whether you’re going to first auction or you’re just hoping to have more luck in your next one, these tips can definitely help to boost your confidence.
Auctions are fast-paced and full of emotion.
Feeling prepared and having a plan in place can help you get the property you want at the right price.
Make sure to research the suburb to gauge how much property should cost.
1. Get there early
Getting to an auction early will give you time to settle in and to scout out your surroundings.
See how many bidders you might be up against and try your best to gauge everyone’s interest levels.
Being early will also allow you to find where you want to be from.
Your position will affect what you can see during the auction.
2. Fake it ‘til you make it
If you’re hoping to make the winning bid, you’ll want to project an unwavering attitude.
Your body language is incredibly important.
For example, slumping can show that you’re not feeling confident or that you’re almost at your set budget.
Showing that you’re a serious bidder could put others off their game.
At the same time, watch what others are doing.
For example, you might see couples looking at each other with concern, and others might be making a phone call or talking to their agents.
When bidders start showing signs that they’re reaching their limits, it’s the perfect opportunity for you to bid without hesitation.
3. Bid close to reserve
Opening your bid high will likely knock out some competition and will position you as a serious bidder.
On the flip side, opening your bid low is safer and could ultimately lower the sale price.
Ideally, you’ll want to bid close to the reserve.
If a property doesn’t meet the reserve price, the auction is ‘passed in’ to the highest bidder.
You’ll then have a chance to negotiate
4. Take control
Bidding close below the reserve allows you to take control of the situation. Bid slowly and set the pace from the start.
For example, if the auctioneer is calling for a bid that’s $10,000 larger than the last, offer $5,000 more instead.
This will show your competition that you’re able to direct the auction.
Avoiding round numbers helps you to change the pace.
Not only can it slow down the auction while the auctioneer adds up the numbers, it could also confuse other bidders.
However, don’t overuse this strategy and try to keep your competition guessing.
Remember to keep your confidence high.
5. Don’t go over budget
In the heat of the moment, you might be tempted to go over budget.
No matter how much you want to make the winning bid, getting attached to a property and spending too much on it isn’t worth it.
You’ve set an amount that you believe that property is worth and you should stick to it!
If you’re looking at buying your next home or investment property why not get the independent team of property strategists and buyers’ agents at Metropole to help level the playing field for you?
As Australia’s most trusted buyers’ agents we’ve been involved in over $3Billion worth of transactions creating wealth for our clients and we can do the same for you.
Our on the ground teams in Melbourne, Sydney and Brisbane bring you years of experience and perspective – that’s something money just can’t buy.
We’ll help you find your next home or an investment grade property.
And we love bidding at auction for our clients.
Guest author: Ellen Orton is the Head of Business Operations at OpenAgent.com.au, an online agent comparison website helping Australians to sell, buy and own property.