The Best Ways to Prepare When Bidding at Real Estate Auction

by Prime Estate

Over the last two years, the property market has left us guessing, hoping, fretting and fearing what might happen.  There were lots of talk around the removal of negative gearing as well as a common belief that parliament was going to change.

Now that a lot of the dust has settled, we’re seeing some strong signs of recovery in the market.  With those signs of recovery there is still talk of recession, so taking advantage of what’s available now and as more stock becomes available during the Spring market might be the way to go if you are still sitting on the side lines.

Competition is strong

One of the main reasons for needing to come up with a solid auction strategy is that there is strong competition for good properties.  Thinking ahead and having a well thought out bidding strategy can make all the difference on the day.

One of the main issues with unsuccessful attempts at auctions comes from lack of preparation.  There are a lot of buyers out there that never even consider the fact that they’ll be communicating their interest for a property in front of 10, 20 or 30 people … for those of you who don’t like public speaking, imagine using your bidding voice to communicate at an auction.

How should you prepare for an auction?

As a high-level view, we always recommend the following:

  • Bid first and bid strong
  • Bid with confidence
  • Create a budget and stick to it
  • Keep your budget to yourself
  • Do your due diligence
  • Use a Buyer’s Agent

When entering an real estate auction for the first (or even tenth time), it’s always important to be confident.  Your confidence will travel throughout the auction and when you’re ready to make your bid, you will have this unwavering tone that won’t be misinterpreted by anyone.

As well as being confident, ensure that you’ve got your poker face on and don’t go over your limit.  This is why it’s important to never attend an auction without having a budget to stick to.  If you are looking as though you’re at the high end of your budget and you’ve made the highest bid, then just remember this – the highest bidders reserve the right to negotiate at pass-ins. If you don’t bid, you can’t influence the auction.

What if you can’t keep it together on auction day?

If you’re reading all the above and thinking, “there’s no way my nerves will allow me to do that”, or “that’s a lot to be thinking about”, then perhaps it’s time to seriously consider using a Buyer’s Agent.

How would a Buyer’s Agent help?

At Prime Estate, we assign our clients a Buyer’s Agent which will take all the pressure off at auction day.  A Buyer’s Agent will go to the auction on your behalf and bid to the budget which you’ve set.

The advantage of using a Buyer’s Agent is that they’ll eliminate the stress and emotion on auction day which can sometimes affect people’s decisions and opinions.

Having been in the property industry for so long, we are extremely well-versed when it comes to assessing market conditions.  We use strategies that place us in the best possible position for our clients on auction day. Open lines of communication are closely maintained with the agents at all times as this gives a more realistic gauge on fundamentals such as price, vendor circumstance, buyer sentiment and how the campaign is tracking.

We use specific tactics to help engage the auctioneer, and as such, this allows us to have a degree of control at the auction right from the start.  Waiting for the last minute to place a bet is not something we’ll do – instead, we usually like to start the bidding off with a nice strong bid.

Next steps …

If it’s coming up to auction season for you and you don’t feel as though you have the confidence and strategies in place to make a strong stance on the big day, you can always reach out to Prime Estate.

At Prime Estate, we have many years of experience when it comes to auctions and doing right by our clients.  You can now eliminate fear, emotion and inexperience when it comes to bidding.  Feel free to leave an enquiry here, and one of our professionals will be in touch with you shortly.

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