Your research is done and your conditions are satisfied. You are prepared to fight for the house! Read on below for some top tips to help you scare off competition and win the auction.
- Check out other Auctions beforehand
Auctions can be pretty overwhelming. Get a feel for the excitement and the flow by attending some beforehand. That way they will seem less intimidating and you will have a better understanding of the process.
- Set a price limit- but have a little bit of wiggle room!
You have worked out what the property is worth in the current market, found out what all the looming costs are and have decided what you are prepared to pay. That is great, however- there is nothing worse than seeing the property sell a few minutes later for a few thousand more! Always ask the bank to pre-approve you for more than you think what you will need. If the market keeps rising, it is frustrating to miss out and still be looking for a home months later. In saying that, know your ceiling and stop bidding when you are done!
- Be confident and assertive
Everyone knows the market value of the home, so don’t waste your time by going in too low. Start with a bid that is close to what you are prepared to pay, that way you will knock out the low bidders immediately. When someone comes back with a counter bid, be quick and decisive with a higher bid. This will discourage others from entering the bidding war as it gives the impression that you are prepared to fight for it.
- Be strategic where you stand.
Find a place in the room where you can observe the other buyers. By being able to see their facial expressions, body language and visual cues it will help you know when they have reached their limit.
- Talk to your Real Estate Agent
It is important to communicate with your agent so that they know you are a serious bidder. If they are aware of your position throughout the auction, they can help guide you. It is easy to become intimidated by the pressure of the auction, and then feel frustrated if it closes with a price you would have been happy to pay. Know your ceiling and don’t give everything away, but also let them guide you so you don’t miss out.
Also be sure to check out our other posts The Buyers Guide to Auction Day to help you get prepared for the Auction.