Buyer’s advocate Frank Valentic from Advantage Property Consulting offers his best tips for beating your competition, come auction day.
Auction bidding can be nerve-racking, even for experienced property investors. It’s a high pressure situation and we know this all too well having bid on the last eight seasons of The Block as well as for many clients, including investors and first homebuyers. We have seen an increase in people bidding on homes above their budget because they got too emotionally involved.
We have some handy tips to keep in mind when bidding at an auction.
Do your research and know your top price limit. If you feel well researched and have been following the market, spoken to professionals and know what level you can bid to, then this will help your confidence.
Acknowledge your emotions
Think about how you are feeling on the day. Are you nervous? Are you feeling defeated from previous experiences? It’s good to be mindful about your emotions, as these can affect your strategy and bidding.
Understand the terms and conditions for the sale
At the beginning of the auction, the auctioneer will announce the conditions of sale. These will vary between properties, so ensure that you are paying attention.
The bidding process can go very quickly. It’s important to be clear minded and aware of what is going on. Being distracted at the end of the bidding process can mean you miss out, or purchase above your budget. Keeping a keen eye on how the bidding increments are progressing will give you an idea of where the auction is heading. When you start bidding, call out the full figure of your bid rather than just calling out the increment. This will help you to be sure what level you are bidding at and keep you in more control.
If you think you may get carried away with the process, it might help to bring your partner or a friend for moral support. If you’re upfront and clear to them about your budget they may be your saving grace if you start bidding emotionally. It also helps to have someone to celebrate with if you do purchase on the day.
These are some basic tips to assist you at auction. If you still don’t feel confident, a buyer’s agent can talk to you about an auction bidding/negotiation service to ensure you don’t overpay for your property.