Bidding on your own property with zero experience as a first timer is like swimming at sunset in shark infested waters. All of your hard work comes down to those few minutes where you go toe to toe with the property market’s apex predator- the auctioneer.
Having a professional do the bidding for you is strongly recommended however if you want to bid yourself here are some tips the pros use which will help put you in front.
Preparation
Your prep should start weeks out from your own scheduled auction. Attending as many auctions as you can in the lead up to yours will help you build familiarity. These should before properties at various price points, all located in the suburbs you intend to be purchasing. An added bonus would be to find out which auctioneer is likely to hold your auction, and attend some of theirs.
This preparation will help teach you to remain calm in highly emotional situations and able to observe all details. Learning typical bidding patterns and understanding the tactics auctioneers deploy to drive bidding up and maintain momentum are invaluable. Also take note of selling agents’ behaviour, encouraging potential buyers mid auction to bid up. Take note of the move to negotiation if a reserve is not met. There is a likelihood you end up in this situation at your auction and having the first right to negotiate is an advantage.
I recommend attending a dozen auctions as a spectator before attempting to bid at your own. You have a right to attend any auction you wish, whether at an auction room or on site even if you aren’t bidding. In fact selling agents appreciate having a bigger crowd on the day to make the property appear more in demand than it is.
- On the day.
- Auction Do’s
- Set your limit and stick to it- to the dollar.
- Keep your bid figure and your bidding strategy to yourself.
- Dress well.
- Arrive early to register and ascertain how many registered bidders there are but not so early you make yourself nervous waiting around.
- Stand in a dominant position front and centre of the action.
- Bid at a tempo you are comfortable with. Set your own pace.
- Bid in increments you are comfortable with, speaking loudly and clearly. If the auctioneer refuses your bid in the interest of the vendor in the interest of the vendor feel free to wait for someone else to bid whilst you compose yourself, then get back on the horse.
- Bring a trusted advisor to support and keep track of bids.
- Bidding early is ok, keep it realistic but modest.
- Do hold the highest bid if the property is passed in you so have first opportunity to negotiate thereafter.
Hot tip- learning the auctioneers name and addressing him/her during bidding
- Auction Dont’s
- Dont Bid if you don’t feel confident. Have a professional bid for you, even a friend or family member who has had some experience bidding.
- Dont attend auction without having attended quite a few ‘dummy runs’ before hand.
- Dont bid without a strategy in place.
- Dont allow the auctioneer or other bidders to rush you or put words in your mouth.
- Dont bid above your number- financial regret can last for years.
- Dont show up without doing your homework and being 100% certain of the value of the property and what you will be prepared to pay for it.
In conclusion
Bidding for your own property at an auction is risky business. Preparation and planning for your auction can certainly sway the odds in your favour, but no strategy is more effective than hiring a representative with your best interests in mind and lots of bidding experience.
A good buyers agent will have attended and won many auctions. They are trained professionals who have done the research so you understand what the property is worth and what price will win it at auction.
