How To Win At Auction

Participating in a property auction is an intense experience, yet it becomes considerably less daunting when you are prepared and approach it with confidence. We’ve found that the best way to confidently bid on Auction day is to a implement structured strategy. Adopting a methodical approach to auctions can significantly bolster your chances of securing a property under the hammer.

Prioritise Due Diligence

Before the auction, due diligence is paramount. Much like the rigorous due diligence conducted when negotiating property purchases for clients, researching recent sales in the vicinity and engaging with the selling agent is crucial. These conversations are strategic interrogations aimed at understanding the sentiment and expectations of other potential buyers. Monitoring buyer interest through open homes and discussions with the real estate agent, as well as attending other auctions, offers invaluable insights into bidding dynamics and the market's pulse. Each auctioneer's unique strategy and mannerisms, once understood, can give you an edge.

Mitigate Risks with Pre-Auction Inspections

Remember, auctions result in unconditional exchanges; you cannot withdraw after winning. Conducting a contract review and organising a building and pest inspection prior to auction day is essential to mitigate risks. You are committing to buy the property 'as is', so ensure you are satisfied with its condition.

Confidence is Key

Confidence is essential at the auction. Positioning yourself at the front and centre of the bidder's gallery allows you to read other buyers, establishing your presence and intent. Observe body language and expressions to gauge emotions and adjust your strategy. For instance, a couple whispering to each other might indicate they are nearing their price ceiling.

Strategic Bidding

Bid first and start strong. Knowing the property's value through market research and recent sales analysis is crucial. A confident opening bid can unsettle other bidders and deter tentative competition. However, ensure your bids are based on solid research to avoid overpaying.

Adjust Your Bidding Strategy

As the auction progresses, adjusting your bid increments in response to the auction's tempo and buyer sentiment is a strategic move. Begin with larger increments, reducing them as the auctioneer and buyer behaviour indicate. Resist the auctioneer's pressure to bid in larger increments, maintaining control to avoid overspending. Auctioneers are adept at reading the room and will use tactics to heighten bidding. They may speak faster or louder as the bidding approaches the reserve price, attempting to induce rash decisions. Stay calm and make decisions logically, not emotionally.

Watch for Auctioneer Cues

Watch for cues in the auctioneer's dialogue, which varies with everyone. When the bid reaches the reserve price, they may indicate the property is definitely selling, sometimes with subtle physical cues like unbuttoning their blazer. A common cue I’ve picked up on is when they say something along the lines of ‘make no mistake, this property is selling’.

Set a Firm Limit

Finally, setting a firm limit and adhering to it is critical. Emotional attachment can lead to impulsive decisions, particularly in the high-stress environment of an auction. This principle is a cornerstone of our approach to property negotiations; understanding the market and setting realistic expectations ensures that our clients make informed decisions without succumbing to the pressure of the moment.

Continuous Learning and Support

While there's no universal blueprint for success at auctions, gaining experience and understanding the nuances of each property and auction scenario can refine your strategy over time. If the prospect of navigating an auction is daunting, remember that our team is here to provide guidance and support, ensuring you approach the auction with confidence, preparedness, and a strategic edge.

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With our Auction Bidding Service, we do all the hard work for you so you, not only get your dream property at the right price, but you’re protected from over-bidding, auction tactics and other bidders.