Auctions can be a confronting prospect. Crowds, heavy bidding and quick-fire math can turn the pressure right up. Emotion gets in the way and the fear of missing out can lead to bidding beyond your limit.
It’s important to set out a clear auction plan rather than a wait and see approach on the day. An unplanned approach can easily result in a strong case of buyer’s remorse.
Some tried and true methods to be auction day ready:
- Do your homework – not only on the property itself, but also the area and things that are important to you such as schools, parks, shopping centres and public transport.
- Understand values in the area – see how your property compares to recent sales of similar homes.
- Attend other local auctions to gain an understanding of the process. If you can’t make it to them, services like Gavl broadcast auctions live.
- Be 100% clear on your limit – and be prepared to let the property go if the price goes beyond it. Setting a limit is not just the amount the bank has advised you can purchase up to, it’s also making sure that you understand the true value of the property – without over-stretching yourself.
- Mortgage stress can have a real impact on your quality of life, so plan ahead to avoid it. Set your limit some days prior to the auction, rather than in the heightened emotional time that is auction day.
Time to lose the emotion
- Prepare yourself for the day. Get there early and scan the crowd. Position yourself where you can see the auctioneer and the crowd – your competition.
- If you’re nervous, try wearing a pair of sunglasses and clothing with a pocket to hide your non-bidding hand – this can help hide any nerves/body language giveaways.
- Show confidence – stand tall and make short, sharp bids. Keep your face as expressionless as possible. Hesitation should be avoided as it can be seen as a sign of weakness to other bidders.
- One big, bold bid (called a knockout bid) is a technique used to do exactly that – knock out your competition.
- Slow the bidding down if you can – offer smaller increments and see if they are accepted.
- Watch the body language of others during the auction for clues that their limit is close.
If you’re still not feeling confident about bidding at auction, consider bringing in the professionals. It can be devastating to be continually outbid at auctions.
Starting the search, property inspections and due diligence all over again can be incredibly frustrating, not to mention the additional cost.
Seek help when you need it
Whether you need help securing your first home or are curious about property investment, using a Buyers Advocate can make the process a whole lot simpler.
They are independent experts who act solely on your behalf to get the best result.
Contact us at Inview Property Group to see how we can help you search for your dream home.
