Are you Auction Ready! 7 Tips for Success...
Preparing yourself for a new home or investment and getting ready for auction day aren't always the same thing. Whether you're a seasoned bidder or a newcomer wanting to seize your first opportunity, there are a few tips that can help you maintain confidence on the big day.
So, what tactics can you employ to stand out from the crowd? Below, we've compiled a few pieces of helpful advice to make sure you succeed on the big day.
1. First things first
Get your pre-approval sorted!
We know how it feels – you find a great place, and you just want to make it yours. But before you
start launching into bids, it’s worth getting a clear picture of what you’re playing with.
2. Don’t go in with your eyes closed
The last thing you want when you’re buying a property is surprises. So it’s super important to
get your eyes over the building and pest reports well before the big day!
3. Know what’s hiding in the fine print
Once you’ve made the winning bid, you’re expected to sign it there and then – so it’s
important to do your ground work ahead of time.
4. Know your limits
It’s so easy to get a bit carried away in the heat of an auction, so the smartest thing you can do is set yourself a concrete bidding ceiling before you arrive.
5. Get in the game – officially
You can’t just turn up and start bidding. In NSW, QLD and Victoria, if you’re planning on raising a paddle, you’ve got to register to bid – before or on the auction day – with some I.D to prove you’re really you.
6. Keep your cool as things heat up
This is it. The big moment. And as bids start getting thrown around, this is the time to take a few deep breaths and remind yourself of the game plan.
7. Have your deposit handy
Make sure you have your deposit sorted in advance, because you aren’t winning an auction without it. A deposit is usually 10% of the purchase amount and is taken as a cheque, and seeing banks aren’t open on weekends... You get the idea.
Auction tips and tricks to stand out from the crowd:
1. Dress to impress. While this might sound obvious, the only people who don't need to present themselves formally are those with billions of dollars. To create the perception that you have the money and budget to beat the competition, you don't need to commit to black-tie attire, but a suit or other well-structured outfit will help you broadcast confidence.
2. Position yourself towards the front of the auction, near the auctioneer. This gives you a bird's eye view of your competition so that you can see who you are bidding against. If you're nervous and this is your first time at auction, spend a little time at the back of the room before moving forward. This will help you build confidence and not feel on display.
3. Ask a question at the beginning of the auction to direct attention towards you, specifically ones that could make other buyers hesitate. For example, are there nearby development plans or impending construction next door? Is the car park included in the auction? These questions may unnerve inexperienced bidders, but can boost your confidence if you've done your research and already know the answers.
When the bidding begins:
4. Call out all your bids with full numbers. For example instead of "$1,000" call "$301,000" so other bidders hear exactly where the bidding stands. Call out all your bids confidently and assertively like you are not going to stop and will continue until you buy the property.
5. Break down your bids to slow the bidding if required. If the auctioneer asks for $5,000 bids, offer $1,000 or $2,500 bids so that the momentum is slowed. Also ensure you have a pre-auction limit and stick to it. There is no use getting emotionally invested at an auction and pouring tens of thousands of dollars down the drain.
6. Use knockout bids, by doubling or tripling another bidder's amount to try and psyche them out. You can also pretend you are out and wait until the third call, before coming in again with a knockout bid. This is a risky tactic, and should only be used by experienced bidders with a higher limit.
At the end of the day
The important things to remember are to do your research, stay within your limits (speak to your Loan Market Broker) and be confident. While assertiveness is at the top of many people's lists as far as auction tactics go, on the day there will always be a lot of competition. Attending auctions beforehand to get an idea of both the properties that will be sold – along with the tactics of other auction bidders – will provide you with the knowledge you need to make cool and confident decision on the day.
Auctions are an exciting thing to be a part of, which is why Ray White GC South Network auctions are great to be involved with. To learn more about the auction process, or to gain the helpful advice of a team of commercial and residential property experts, get in touch with the team at Ray White GC South Network today. It'll be the best decision you've made this year.