Blog 04

Checking Out your Competition at a Property Auction

Once you’ve attended some property auctions, you’ll quickly see just how competitive they can be. Unless you have access to some form of inside information, your chance of winning an auction will be close to zero. Take a look at the tips below, which will help give you an edge when it comes to getting the property you want.

Dress for the House you want

While there may not be a specified dress code to use when going to property auctions, ‘dressing the part’ will go a long way in helping create the impression that you are financially able to outbid everyone else. Consider borrowing a suit if you have to, as this will ensure that you look as professional as possible. While this might seem like a lot of extra effort to do, you can even go as far as hiring a luxury vehicle to drive to the auction property with. Standing by it, while dressed smartly will provide the impression that you have cash on hand to win the auction.

Bring Attention to yourself at the Beginning of Proceedings

One of the best ways to do this is to ask questions right at the start of the auction. For example, ask if any form of body corporate fees or levies apply to the property being auctioned off and find out whether any plans are in place that will involve development taking place in the immediate area surrounding the auction property. Asking questions like these will almost certainly put a few inexperienced buyers off of placing bids.

Do Not Fall in Love

Before you place a bid, you must know how much you will be able to afford to spend. There is no point in becoming emotionally attached to a home if you’re going to have to go way over budget to do so. If you feel that you might get overly attached to the auction property beforehand, you may want to consider sending someone to do the bidding on your behalf. This can either be someone you already know and trust or you can consider hiring the services of a buyer’s agent. These agents possess significant auctioneering and bidding experience, meaning that they will help handle a lot of the stress on your behalf.

Break Bids Down and Call Full Numbers

When bidding, always call out full numbers. For instance, instead of calling $10,000, call $602,000 so other bidders can determine exactly how much you have bid for. In a lot of cases, simply hearing the complete number of the bid will be enough to deter people from placing their bids because they realise then how much they’ll be spending if they win. Breaking bids down can slow the auction process down too. For example, if the auctioneer asks for $5,000 bids, offer $3,000 to slow the momentum somewhat.

Placing bids while keeping your budget in mind will help prevent you spending more than you can afford when looking for a property.

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