Some people love the excitement of bidding at auction and the chance to snare the property of their dreams, but their confidence can give others the jitters, causing them to miss out on a property due to the fear of bidding under the hammer.
New research from Westpac’s Home Ownership Report has found that over half of next home buyers (56%) admit to feeling to scared to bid at auction, and further to this, 46% say they don’t feel confident they know what to do.
Auctions are a popular way to sell property around the country and many buyers could be missing out on some great deals. If you’re a buyer who is apprehensive about bidding, it could be time to face those fears with a little bit of knowledge and know-how. Our top five tips for getting into the auction action are:
#1 Attend other auctions!
Nothing gives you a better idea of what to do at an auction than to see them first-hand. A great way to break down any fear is to first understand the rationale. By attending auctions of properties in the area you’re looking to buy, you can witness the process by watching the auctioneer, reading the provided T&C’s, observing actual bidders, and familiarising yourself with agents in the local area. Understanding terminology, getting an idea of the best place to stand and what a buyer should say and do play a big part in conquering your fear.
#2 Research the market
Keep an eye on the local property market so you can get to know price trends and the values of different housing types. Having this knowledge behind you at auction time can prevent you from over-bidding and help boost confidence in determining what price a property may sell for at auction, making bidding less of a daunting process.
#3 Set your limits
After you have done some research and due diligence (such as a building and pest inspection) on a property for auction, set yourself a bidding cap and don’t waiver from it. Bidding over your cap can mean having to beg family and friends to make up the extra and is not an advisable strategy.
#4 Get help
If you’re still nervous, consider asking someone to bid on your behalf. A buyer’s agent can attend an auction with you, or talk to you over the phone and bid on your behalf.
#5 Don’t worry about anyone else
One of the keys to being successful at auction is not to worry about what everyone else is doing. Have a goal and a price in mind and remember to stick with it.