Buying a property at auction can be an extremely daunting experience for the uninitiated. Everyone who registers is hoping to walk away with a great property, however there can only be one winning bidder on the day.
So what can you do to help improve your chances of getting a property, while ensuring that you don’t pay too much?
Get to know the auction process
First things first – get to know the auction process so you can get a good idea of the typical auction atmosphere and get a feel for how things are generally conducted.
Attend as many auctions as you can to get to know different people’s bidding styles and what tends to work and what doesn’t work.
The more familiar you are with how an auction is run the more confident you are likely to feel when it’s your turn to start bidding.
Research the local market
Every area and property type is different and will face different levels of competition. Check out auction clearance rates to get a good idea of what you’re up against, but also take the time to look at properties sold via private treaty.
Get a solid idea of what similar properties to the one you want are selling for and how much demand there is for them.
Know your budget
Before making any bids you need to know your budget. Figure out your absolute maximum price limit, which will be what a bank is willing to lend you plus the amount you have saved.
It’s always a wise move to get pre-approval before heading to any auction so you can feel confident in your financial situation.
On auction day, decide on the maximum price you are willing to pay and make sure you stick to it.
Be confident and get noticed
If you’ve decided you’re ready to bid then don’t turn up and hide in the background. Stand at the front and centre and make yourself known to the auctioneer. State your bids loudly and clearly and try not to worry about what anyone else is doing. Just keep your final price in mind and don’t go any higher.
Being confident at an auction lets people know that you’re a serious bidder to contend with, which can work in your favour.
Be the final bidder
No matter how prepared you are or what strategies you use the only way to guarantee you’ll be the one walking away with the property on the day of an auction is to be the final one who bids after the property has hit the market.
To help ensure the property you’re bidding on is within your budget you need to follow the steps above and really know the local market and get a good idea of what the property is likely to sell for.