Buying a property at auction can be an extremely nerve-wracking experience whether it’s your first time bidding or maybe even your fifteenth. That’s because everyone who registers on auction day is hoping to walk away with their dream home, however there can only ever be one winning bidder on the day.
When a property is popular it can seem almost impossible to end up being the lucky bidder, but there are some things you can do to help improve your chances of securing a property, while still ensuring that you don’t pay too much.
- Get to know the auction process – If you’re unfamiliar with how an auction works, or haven’t seen one in action before, it’s a good idea to attend a few to get an idea of the typical auction atmosphere and get a feel for how things are generally conducted. Seeing a few different auctions will also show you different people’s bidding styles and help you figure out what might work for you. The more familiar you become with the auction process, the more confident you are likely to feel when it’s your turn to bid.
- Research, research, research – No two properties are the same but you can get a good idea of what a property might sell for at auction by looking at recent sales data in the same area. Visiting local auctions and open homes can also be worthwhile as it can give you an idea of the level of buyer demand in the area and what property features are popular.
- Understand your budget – You need to have a solid understanding of your price limits before you start bidding. Take your time talking to lenders and figuring out the absolute maximum you’re willing to pay on a property. It’s well worth getting pre-approval before heading to any auction so you can feel confident in your financial situation. When things get heated on auction day keep your price limits in mind and be careful not to bid beyond them.
- Remain calm and confident – On auction day, don’t worry about what anyone else is doing; just keep your end goal in mind. If you intend to bid then stand at the front and centre so you can be easily seen and heard by the auctioneer. Make your bids loud and clear and be as confident as you can be. Being confident at an auction lets people know you’re a serious contender, which can work in your favour.
- Be the last one standing – At the end of the day the only thing that really matters on auction day is whether or not you’re the final bidder. Strategies and preparation may be able to help you, but the only way to guarantee that you’ll walk away with the property is to be the final bidder.