How to Win a Property Auction.
Bidding at a property auction can be a stressful experience, regardless of whether you are a seasoned investor or a first-time homebuyer. There’s more to bidding than just inspecting the property and raising your hand at the auction. Winning takes strategy, research and planning.
With a lot of money at play, fierce competition, and all eyes turned your way, it’s not surprising that you may want to shy away from the process altogether.
Before you rule out auctions, and in turn wave goodbye to your dream home or investment, check out the checklists below, composed by our agents to help guide you towards bidding success.
Pre-bidding Checklist (What to do before attending an auction):
- Establish the true market value of the property. This gives you an accurate guide as to what you should bid to secure the property.
- Research the sales and advertising history of the property and neighbouring properties to understand local demand. Be wary if a property has repeatedly been on the market for a long time.
- Speak with the agent and other local agents to find out what is really happening with the campaign, e.g. contracts issued, registered bidders.
- Arrange for due diligence checks to take place, i.e. strata, building and pest inspections.
- Double-check that your conveyancer is happy with the contract, and get all changes in writing for auction day.
- If you are borrowing money, make sure you are approved to bid.
- Check whether the state you are bidding in requires you to pre-register for auction.
Auction-day Checklist (How to bid successfully at auction):
- Establish a game plan – including what to expect during the auction, your strategy and your auction limit.
- Show your ID to the selling agent to get your paddle.
- Introduce yourself to the auctioneer before things get started – getting in the auctioneer’s good books might improve your prospects.
- Stand in an area with a good view of other bidders.
- Raise your paddle in the auctioneer’s line of sight for each bid.
- Be aware of your competition’s body language and behaviour – look for cues, e.g. they may have reached their ceiling if they huddle with their support team. If they subsequently place a bid with a small increase, immediately go a little bit higher.
- Bid in odd increments, this will encourage smaller bid increases as well as slow bidding momentum – not all auctioneers are fast at maths.
- If you are the highest bidder, but the property does not reach the reserve price, you will be given the first option to negotiate with the seller. Know your strategy, and remember just because you made the highest bid, doesn’t mean you are the only contender – don’t be unnecessarily tough during the negotiation.
- Double-check that the contracts are correct – things can be overlooked in the buzz of auction day.
As you can see, there is a lot that goes into winning a property auction. Above all else, it pays to be prepared. The best form of preparation is a buyer’s agent. More and more buyers and investors are seeking professional help to level the playing field and get ahead at auctions.
An experienced and knowledgeable buyer’s agent will guide you through all of the steps above, and stand in for you during the process – including the tough and intimidating parts like bidding, negotiation and settlement.
What you spend in agent fees will undoubtedly save you money, time and heartbreak in the long run.
The Maker Difference.
Whether you are looking for support in hotspots like Sydney, Melbourne, Brisbane, Adelaide, Perth, the Gold Coast, the Sunshine Coast, or in any other city or regional centre in Australia, Maker Advisory has the network to help you realise your property dreams sooner.
Interested in learning more about how our Maker Advisory buyer’s agents can help win at auction? Contact us.
Interested in finding out more? Send us a message and we will be in touch.