Bidding At Auction: Our Top Tips

Martin Froese
September 10, 2017

SENIOR PROPERTY CONSULTANT, AUCTIONEER

As an auctioneer, I often get asked “how do I go about bidding at auction?”

“How do I go about bidding at auction?”

“What can I do to ensure that I’ve got success on auction day?”

It’s getting harder and harder to buy property with so much competition. I guess the first thing to do is to be prepared. Do your homework. Look around, go and look at auctions, go and look at an auctioneer in particular – the one that might be looking at auctioning the property you’re interested in – just to get familiar and comfortable with what they’re doing.

You’ll be asked to sign an unconditional contract on the day, so make sure that your finance is in place. Ensure you’ve got your 10% deposit squared away and that you’re also prepared to settle on the property at the vendor’s settlement day. If you do want variations of those things, you can ask the agent to look at alternative settlements and deposit arrangements if need be.

I guess from here the next thing we look at is the price.

What are you going to be prepared to pay? And it’s good to do your homework ahead of time because so many people make that last decision – Do I bid? don’t I bid? – once they get to the auction and can make some knee-jerk reactions, and perhaps not make the right decision.

So, ask yourself the question ‘what if…?’ If it does go beyond the limit that you’re feeling comfortable at, are you prepared to go another five, another ten, another 20 to secure the property? And if you are, then it’s best to bid confidently once you do get to auction day.

I guess the final thing comes down to tactics. We all know that if someone’s going to pay a whole lot more for the property than you, probably tactics don’t come into it too much. And if you’re prepared to pay more than everyone else, again you’re going to have some success.

Bid confidently.

Make sure, if you ever place a bid, that you don’t look like it’s your last bid because that’s only going to make things a little bit easier for the competition if they think that you’re on the ropes, so to speak. So, bid confidently all the way to your limit. If the property

If the property is passed in, it’s important to be the highest bidder so if there’s a vendor bid or another bidder who has bid higher than you, make sure you’ve got their highest bid.

How you go about bidding is very much up to you. Some people like to bid loudly, some softly, some will bid quickly, some slowly. I guess it doesn’t really matter whether you bid slow or fast, just make sure you bid last.

Good luck.

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