Buying a property at auction can be daunting. But, this need not be the case if you’re prepared and have done your homework.
Sellers who put a property on the market via auction, typically do so for a good reason. Usually the property is unique or the seller wants a quick sale so that they can move-on.
Even the most experienced buyers can find an auction challenging, especially if the turn-out is considerable and bidding competition is high. An important consideration, in this instance, is to not get emotionally attached to a property so that you push yourself over your financial limit.
So while auctions can be demanding, they can also allow you to nab a bargain, especially if the vendor is keen to sell. The downside of auctions though is that you have to have your finances organised before you get there, and you’ll need to be able to pay a deposit on the day.
Other auction strategies that you can use to make bidding a little easier include the following:
• Look the part – By dressing impressively you give yourself a competitive edge as other bidders can find your look intimidating. Typical attire may include a suit, or slacks and a business shirt, jacket and tie, or a skirt and blouse.
• Know the market – It’s vital that you understand the local market and what is, and is not, considered as a good buy. This will prevent you from bidding too high on a property that is worth less, and help you to stay on budget.
• Position yourself well – When you bid at an auction, place yourself in a prime position so that you can see the other bidders. This will allow you to understand who your competition is and may enable you to get an edge.
• Bid confidently – When you bid, say your figure with confidence. This means speaking loud and clear. Buyer’s agents also recommend that you say the full amount. So rather than saying $450, say $450,000. This makes other bidders think about the value more. $450 sounds like a smaller amount, whereas $450,000 sounds like a large figure.
• Hire a buyer’s agent – If you’re worried about becoming emotionally involved and attached to a property, or caught-up in a bidding frenzy, then hire an agent to do your bidding for you.
• Time your bidding right – Some buyer’s agents will suggest that you leave your bidding until the last minute so that you get the last bid in. This way if the property is passed-in you will get the first option to negotiate. But, this strategy can be risky, and you may miss the fall of the hammer. Other buyer’s agents suggest making an early bid to put yourself into the mix. But, they recommended that if you make your first bid low so that you leave yourself some room for negotiation.
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