Attending my first auction tomorrow as loan approval came through yesterday. Does anyone have any words of advice or tips on bidding?
If a fly lands on your nose whilst the auctioneer is saying "going twice" the you need to resist the temptation to shoo it away........when I was about 12 I bought a chisel plow at a clearing sale doing just that!!
I think all the smart people would actually tell you to stick to your budget and dont get caught up in the adrenaline and hype. The world is full of people who paid over their budget because the temptation to "run" someone is too high.
Just sick to your budget and walk away if it goes too high.
Also, if there ends up being no bidders (like I witnessed 2 weekends ago) don’t worry. If you like the house enter after auction negotiations, don’t be fooled into putting your hand up.
Here’s advice from an auctioneer...the more you pay the more it’s worth.Auctions are like a stage show selling environment and newbies can get emotionally overwhelmed by what’s occurring in front of them.They can also over pay for a property.I suggest bringing someone with you who has bought or sold at an auction before for a voice of reason.
The loan approval is great, good on you for being organised. The tough part at Auctions is they are unconditional at the drop of the hammer (and 72 hours either side).
You have hopefully attended 15-20 auctions over the last few weeks and months so you know how they work. I would suggest to just be open and upfront. If you want to buy the property and you know what you would pay then bid early and bid confidently up to around 5% less that your expected price and then stop and ask the agent “is the property on the market”. If it is, you need to bid. If it isn’t, then you can hold your cards until they say they will pass it in and you then decide if you want the chance to negotiate further.
This is a really general overview but hopefully it makes some sense.
Don’t let excitement take you past your limit, there are always more properties
Best of luck
Exciting time... auctions are unreal fun if you follow the tips above.
One of the best suggestions o can give you is to put a low ball bid in off the bat.
It will help you calm your nerves,
it will demonstrate your intention to purchase
It will, if the property is passed in, give you the opportunity to engage with the vendor if the property is passed in.
Enjoy the experience and if possible go to a few, register to bid and get familiar with the process.
Thanks for asking this as many people get scared away because of the attention that is drawn to them when they bid