10 Hot Tips for Buying at Auction
Prior to the event
– Use your research and budget to help you identify a ‘walk-away’ price. It’s in your interest to keep this a secret from the agent, so they don’t use this information to help the vendor set their reserve.
– Have your finance already in place and attend the auction ready to write a deposit cheque.
– Attend some auctions beforehand to experience the atmosphere and observe different bidding strategies.
– Organise any amendments to the contract, such as a longer settlement period, prior to the auction. Talk to the agent and get agreement from the vendors in writing.
On the day
– If you’re going to start the bidding, start low.
– Project confidence – make the other bidders think you have no limit.
– Make your bids fast and assertive. Agonising over your next bid is a sign of weakness.
– Call out your offer in full (i.e. say “$350,000” instead of the increments, i.e “$5,000”).
– If it’s going to pass in, make sure you’re the highest bidder, as this usually allows first right to negotiate (whether this is a legal right or courtesy varies between states).
– Stick to your ‘walk-away’ price. It’s better to feel the short-lived disappointment of missing out on a property you love than the long-lasting remorse of paying too much.