Potential homebuyers can be intimidated by the concept of buying a property at auction. However, bidding at auction doesnʹt have to be a scary process. Follow the tips provided below, and you will have the best chance of winning your dream property.
Most importantly, you must know your budget, and what you are willing to pay for the property for which you intend bidding. That way, you may proceed as far as you can during the sale, knowing that if the property sells for more than your budget will allow, it simply wasnʹt meant to be yours.
DO YOUR HOMEWORK - THEREʹS NO SUCH THING AS DOING TOO MUCH RESEARCH. SPEAK TO AGENTS WHO KNOW THE AREA, LOOK INTO WHAT SIMILAR PROPERTIES HAVE SOLD FOR AND EXPLORE THE AREA. THIS WAY, YOUʹLL KNOW EXACTLY WHAT YOUʹLL GET FOR YOUR MONEY.
- Attend as many auctions as possible before you start bidding, to see how auctioneers behave and the tactics of bidders.
- Set your financial limit, and stick to it.
- If possible, set an uneven limit, such as $181,000 rather than $180,000. That may be the difference be-tween your (winning) limit and that of the bidder next to you.
- Ask for help from a friend or real estate agent to assist with your bidding, particularly if you are nervous and think you may continue beyond your limit.
- Dress accordingly - confident, moneyed buyer that you are. If you look as if you have bottomless pockets, you may convince a rival to withdraw from the race.
- Check the paperwork to guarantee you know all the conditions of sale.
- Stand in clear sight of the auctioneer so your bid canʹt be missed.
- Bid clearly, confidently and without subterfuge to ensure the auctioneer sees you as an interested party.
- Offer a lower denomination as your bid if the numbers are increasing too quickly. The auctioneer may
- refuse it, but thereʹs no harm in trying. Alternatively, you can try outwitting the opposition with a larger ʺknockoutʺ bid. Remember, confidence is the key.
- Be prepared to be successful. If you are the highest bidder, youʹll have to be ready to hand over a de-
- posit, usually 10 per cent. And remember, there is no cooling off period at auction.
IF BIDS DO NOT REACH THE RESERVE PRICE, THE BIDDER WHO BIDS THE HIGHEST PRICE MAY BE GIVEN THE FIRST OPPORTUNITY TO BUY AT THE RESERVE PRICE (YOU WILL NEED TO CHECK WITH THE AUCTIONEER PRIOR TO THE AUCTION IF THAT WILL BE THE CASE).
THIS CAN BE A GOOD POSITION TO BE IN FOR IT GIVES YOU THE FIRST OPORTUNITY TO INCREASE YOUR BID PROVIDED THE AMOUNT IS STILL WITHIN YOUR BUDGET.