When you are competing for your dream home, property auctions can be daunting. For you, there is a lot riding on the outcome, especially if you are selling your current home and hoping to move seamlessly from one to the other.
As much as you may think this is your ideal new home, the chances are that at least one other person at the auction will think that it is their ideal home. In addition, there may be property investors and phone bidders attending as well. It can become a very emotional and unsettling proposition particularly if it is your first time.
You’ve probably spent a month of weekends attending open houses and trying to imagine your life fitting into each and every home you walked into. But come auction day, the last thing you need to be doing is mentally moving in. You need to detach yourself from the home under the auctioneer’s hammer and focus on your strategy and budget.
Here are 5 tips to ensure you are a confident, professional bidder at auction.
1) Get familiar
Attend some auctions so you can see what happens. Can you tell who is really interested and who is ‘tyre-kicking’? Are there phone bidders or property investors there? Is anyone using a buyer’s agent?
2) Make sure your due diligence has been done
If you win at auction and you’ve not had contracts checked, inspections done and finance confirmed you could be in for some serious problems
3) Have a strategy
An auction strategy will determine when you start bidding, how frequently and when you will stop. If you’ve attended a few auctions to get a feel for the atmosphere, you may notice that the serious bidders only get started right at the very end.
4) Know yourself
Even if you have a strategy, it’s good to quite literally have an ‘exit strategy’. If you are likely to get carried away during the auction and possibly bid above your budget, be prepared to leave the auction location immediately you reach your top price. You can always find out how much the property sold for later.
5) Budget rules
Rule number one. Know your budget. It is the amount of money you are willing to spend on a home. Do not exceed your budget in the heat of the moment.
Rule number two – do not break rule number one.
You may find the thought of auctions just too much, with too much, both financially and emotionally riding on the outcome. If this is the case, consider using a buyer’s agent to represent you during the auction and to help with all the necessary preparation, ensuring you have every possible advantage on auction day.