How to Win at Auction
Auctions can be stressful and intense, but they’re a fast way to buy or sell property. To succeed, it’s crucial to understand the unpredictable and rapid nature of the auction process.
Here are some tips:
Prepare Yourself
To ensure you have a good understanding of how auctions run, their format and structure, it’s worthwhile attending a few auctions as a spectator before actually taking part in the bidding process.
You can observe bidding strategies and gauge local housing values and auction prices without the pressure of bidding yourself.
Decide on Your Bidding Strategy
Before attending an auction, prepare a bidding strategy. With experience from previous auctions, you’ll know which tactics work for you and which to avoid.
Are you going to start off strong and lead the bidding? Or wait until the last moment and then bid, hoping to undercut the competition?
Avoid Going Over-budget
It’s easy to get caught up in the excitement of an auction and end up committing way over your budget. To avoid going over-budget, know your limitations and have a set figure in mind that is your absolute highest bid.
It’s important you remain realistic even if you are emotionally attached to the property already and not get carried away by bidding far more than you can afford.
Be Decisive and Clear
Bidding can feel a little intimidating at first and if you’re not that confident, you may want to employ a professional to bid on your behalf. If you are bidding for yourself, be sure you bid loudly, clearly and confidently, signaling your intent to the auctioneer and hopefully scaring off the competition!
At the same time, keep an eye on your rivals as you’ll be amazed how much you can learn simply from their body language. Equally, it’s important you remain outwardly calm and in control as you’ll no doubt be under scrutiny too.
Don’t Give Up
If you’re not successful, try again at the next auction, improving your technique each time. Importantly, know when to stop and avoid overspending in bidding wars.
If you are considering attending an auction in the near future to buy property, it’s important you’re pre-approved so you know how much you have to spend. Talk to one of our brokers about your finance so you’re prepared ahead of time.