The odds of being the successful bidder at a property auction can be improved by being well-informed and having a strategy, rather than just showing up and hoping for the best.
Auctions listings in Sydney and Melbourne are running at about twice the levels of 12 months ago, after the lifting of COVID-19 restrictions and as owners rush to bring their properties to market while there is still price momentum.
As we have a few auctions coming up and have had heard a few nervous clients ask what they need to know. We thought we would share our top tips for bidding and hopefully winning an auction.
Plan & Prepare
Like any good winning strategy, there is planning done to achieve the results. Same with auctions, we suggest monitoring the most recent property sales in the area coming into the auction. That way you know what the market is doing and can be prepared not to pay over market price or get carried away with the excitement of an auction.
It is also a good idea to visit a few auctions prior to the one you want to bid at. This may calm the nerves and give you a better idea of a good strategy to win.
Arrive Early
Arrive early at the Auction so you can register to bid and take one last look at the property. Remember to have your finances pre-approved so you know your limits and have completed a building and pest report prior to the auction because when you bid at auction the sale is final.
Arriving early will give you a chance to pick a good spot to stand for the auction.
Keep Your Cards Close
Don’t show your eagerness to buy. Stay calm throughout the auction – you don’t want other bidders knowing your intentions.
Don’t jump the gun.
Start low and try not to yell your maximum bid as soon as bidding starts.
Stick To Your Limit $
Before you get to the auction decide on the plan and your absolute highest bid amount. Stick to that plan, It's not a good idea to bid more than your budget. Your absolute limit should be what the bank is willing to lend you plus your saved deposit.
If you feel super nervous and know you might want to go over your set budget then we would suggest finding a buyers agent that can bid on your behalf.