8 HELPFUL AUCTION TIPS FOR SUCCESSFUL BIDDING
1. Attend Auctions in the Area:
Get yourself familiar with the auction environment before you attempt to bid at an auction. This will help you familiarise yourself with the auction process and language used. Going to local area auctions will also help you gage the demand in the area.
2.Uncover the Reserve Price:
During the auction, you may hear that the house is "on the market." This means the bid has reached its reserve price, and the vendor is willing to sell to the highest bidder. To uncover the reserve price, look for clues from the auctioneer. For example, the auctioneer may reject the first bid if it's too far from the reserve price. They may also encourage higher incremental bidding, such as $50K instead of $10K. As it nears the reserve price, the auctioneer will be more willing to accept smaller bids.
3. Set yourself clear limits.
Have a clear understanding of how much you can afford. Then, set two limits for yourself: a) The maximum amount you're willing to pay for the property based on your research. b) How much extra you're willing to pay. Once you determine your maximum price, stick to your budget and avoid getting caught up in competitive bidding.
4. Slow the auction pace:
You can try to slow the auction pace by increasing your bids in small increments or bidding in odd amounts (e.g., $802,500 instead of $800,000). This can throw off other bidders and give you a psychological advantage.
5. Last-Minute Bidding:
Consider holding back and waiting until the final moments of the auction to place your bids. This can catch other bidders off guard and give you an advantage. You may still need to place a few bids even towards the end.
6. Monitor Competitors:
Pay attention to other bidders' behaviour and bidding patterns. Look for signs of hesitation or uncertainty, which may indicate that they're close to their limit.
7. Confident Body Language:
Maintain confident body language throughout the auction, Stand tall, make eye contact with the auctioneer, and avoid appearing hesitant or uncertain.
8. Be Prepared to Walk Away:
If the bidding exceeds your limit or if the price exceeds the property's value, be prepared to walk away. It's better to lose the auction than to overpay for a property.
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