So you’ve been scrolling through houses for sale online and come across the perfect place. Then, suddenly you see it – those dreaded words – AUCTION THIS SATURDAY.
If you’re a real estate auction newbie you needn’t sweat it. You’re not alone. The fact is though, more and more houses are being sold at auction these days as sellers take their chances to try and get the best result.
By doing your legwork beforehand, and knowing what to look out for, Here’s how to give yourself the best chance at landing a sale so you can crack the champagne!
- Leave emotion at the door – Do your research and know how much you’re willing to spend on the property. This will give you a price ceiling to stay under, meaning you’re less likely to act on emotion if bidding moves above your budget range.
- Be confident and assertive – no need to rock up in a flashy car and suit, but when you’re making your bid, speak clearly and loudly. Exuding confidence might help you get a mental edge over your fellow bidders. If you’ve already spoken to your bank about the auction and finance for the property, this can definitely help add a little spring to your step.
- Don’t hate the playa, hate the game - If bidding is rising by regular increments, look to change the rules of the game and get in the heads of other bidders. For example, if bids are increasing by $5,000 each raise of the paddle, place a bid $1,000 higher. The fact that you just keep edging them out lets them know you’re prepared to do whatever it takes, and may be enough to see off their challenge.
- Shock and awe – If bids are crawling up, a tactic to try and eliminate all competition is to significantly outbid everyone, but go just short of your own price limit. This may have the effect of killing bidding momentum, but will leave you with that bit of wiggle room if someone is brave enough to match it with you.
- Outsource your bidding – If you feel like a nervous wreck just thinking about the bidding process, then why not get someone to do it for you? If you’ve got an assertive mate, that’s perfect, but you can also opt for a pro and enlist a buyer’s agent. These agents are seasoned in auction tactics, and will do everything they can within your price ceiling to get you a result on the day.
- Make an offer – If you’ve fallen in love with a place, and want to avoid the auction process, by all means contact the agent and make them an offer. The agent will discuss with the seller whether or not they think a better deal is possible through open bidding, so be prepared to negotiate if necessary.
If you’re in the market for your first or next place and feel that an auction may be a part of your future, why not let us show you how we can help? Check out our How-To Guides. Home Loan enquiry
This article is intended to provide general information of an educational nature only. Information in this article is current as at the date of publication.