What Not To Do When Buying At Auction What Not To Do When Buying At Auction

What Not To Do When Buying At Auction

Without fail, the most common question I’m asked by buyers is “how do I win at auction?”. While I don’t believe there’s a magic formula to making the auction environment work for you, there are certainly some tactics I’d recommend against:

 

  • Don’t act disinterested

If you’ve come through a property multiple times, discussed settlement terms and perhaps even paid for a building inspection, there’s really not much value in playing it cool. A good agent will recognise a serious buyer and will do all they can to help you. Importantly, you can ask them to keep you updated if they receive an offer before auction. 

  • Don’t be afraid to make the first bid

Many people will tell you to hold off on bidding until the end of the auction. This strategy suits some – but it’s worth considering that bidding consistently throughout an auction sends a message that you’re a serious buyer and gives you more control over the rhythm and pace of that auction.

 

  • Don’t bid small

The bid amount will naturally get smaller towards the end of the auction, but I’d recommend against offering a small bid – say $1k or $2k – when the auctioneer is asking for $10k. It suggests that you might be close to your limit, and invites competition.

 

  • Don’t be unprepared

Each auctioneer has their own style. As such, it’s a good idea to watch the auctioneer who’ll be conducting the auction you’re looking to bid at before the big day. This will give you a feel for the way they pace their auctions and how they interact with the crowd.

 

  • Don’t be uninformed about values

Check comparable sales thoroughly. Be confident about the amount you’re prepared to bid; if you are really keen on the property, be mentally prepared to pay a premium.

 

Whether you’re buying or selling at auction, it’s important to feel confident about the process. Call us today for comprehensive advice from an experienced local team.

Greg Hocking