To ensure you are the winning bidder at an Auction, there are a few important factors to understand about the Auction process. We’ve prepared these ten tips for buying at auction that is guaranteed to help you along the way.
“For a buyer, the biggest benefit of buying at auction is that you know exactly what price other buyers are prepared to pay for the home. There’s no mucking around. You know if you are $100,000 off or $1,000.” Calibre Real Estate Sales Professional, Marlene Baker, reveals, “The worst thing in a multiple offer situation is not knowing what other buyers are prepared to pay and I’ve genuinely seen people miss out on a house for a mere $250. ”
10 Hot Tips for Buying at Auction
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1.Determine your Walk-Away Price
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.
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2.Get Your Finances In Order
Have your finance already in place and attend the auction ready to write a deposit cheque.
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3.Do Your Research
Attend some auctions beforehand to experience the atmosphere and observe different bidding strategies.
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4.View the Contract
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.
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5.Know Where To Start Your Bid
On the day, if you’re going to start the bidding, start low.
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6.Be Confident
Project confidence – make the other bidders think you have no limit.
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7.Be Assertive.
Make your bids fast and assertive. Agonising over your next bid is a sign of weakness.
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8.Announce Your Bid
Call out your offer in full (i.e. say “$350,000” instead of the increments, i.e “$5,000”).
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9.Be Number ONE
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).
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10.Stick To Your Guns
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.
Quote provided by Calibre Real Estate’s Residential Property Specialist –
Marlene Baker
0423 799 727
Marlene.baker@www.calibrerealestate.com.au
Did you find this article about buying at auction helpful? Here are some other articles about finance, mortgage brokers and purchasing property that other readers have found helpful :
- How to Choose a Mortgage Broker
- How To Buy At Auction. 14 Things You Need To Know.
- Ten Tips About Buying Real Estate That Will Save You Money
- The Best Financial Advice You Need To Buy Your First Home
- The 7 Vital Facts You Need to Know As a Buyer In a Multiple Offer Situation
