Auctions can be daunting, especially if it’s your first one or if you’ve had some bad experiences in the past.
Auctions stir up emotions. Real estate agents can use this against you to try to get you to bid more than you should. For some, they can suppress these emotions and bid using their heads, not their hearts. If you’re looking to knock out the competition at auction and score yourself the ultimate prize of your dream home or ideal investment property, then here are some tips and tricks to help you get there without the auction stress.
1. Look the part.
Some might say that appearances don’t matter but in some parts of life they definitely do. Winning at an auction is one of them. If you can come across as confident, professional and as though this is no big deal then the competition might just get a little psyched out. You want your competition to take you seriously. If they think you’re professional and have the budget to back up your appearance, they may be more likely to step out of the bidding early. Wear business attire, speak with authority and confidence whether you’re going to an auction in Kwinana or Rockingham – always project the same confidence.
2. Ask questions.
Asking the agent pointed questions and building rapport with them might leave others second guessing. Things like “What can you tell me about the construction down the road/next door/above” or “Are there any development approvals in place?”. Although these questions are fairly simple and straightforward, inexperienced bidders might hesitate to go that one step further.
3. Position yourself front and centre.
It’s a good idea to position yourself just towards the front and preferably next to the auctioneer as opposed to at the back. You want to be able to see the people are you bidding against without having to crane your neck or perform awkward acrobatics. Also, being in the line of sight of the auctioneer is a good way to ensure your bids aren’t missed.
4. Stick to your limit.
Don’t go into the auction without a solid figure in mind as to what your absolute limit is. Also keep in mind not to get caught up in the atmosphere and overspend on impulse. It’s better to overestimate your budget by just a little and stick to it than keep it low only to go over it by an absurd amount.
5. Break down bids.
In order to try and slow down the auction and avoid reaching your budget too early you can try slowing down the bids. If the auctioneer asks for an increase of $5,000, you don’t have to match them. Offer up $1,000 instead. This way it slows down the pace of the auction and you’re not left in the dust.
6. Double other bids.
If you are feeling confident and assertive a good way to show you mean business is by doubling someone else’s offer. Say they offer $1,500; you then counter it with $3,000.
It’s a psychological move that might put off other bidders. Another technique favoured by experienced bidders is the knock out bid, wait until the third and final call to place your ‘home run’ bid.
7. Ask a professional.
To avoid going over budget a lot of people hire a professional to bid for them. You can keep track of progress by listening on the phone. This can sometimes be beneficial if you find yourself unable to hold back and stick to a budget. Someone else is able to think a tad more rationally and clearer when it comes to a property.
8. Time your bid.
While some people believe that lurking in the background before launching a sneak attack on other bidders is the only way to win at an auction, it isn’t necessarily true. If you wait too long to jump in, you might lose out without getting a bid in. On the other hand, going in too early can have the same effect. Once you get a feel for the pace of the auction you’ll know when to place your bid. You might not want to be the first bid but you definitely want to be the last.
9. Say it with pride.
Call out your bid with assertiveness and confidence, don’t be the mouse in the corner whispering bids. If you want this property so you’re going to have to say it out loud and with strength.
10. Be realistic.
Of course it’s only natural for one to get attached to a property, but understand it might take a few auctions until you are successful.