So the house you’ve fallen in love with is going to auction and you’re feeling a bit anxious as you have very little experience in bidding. By following the auction tips for buyers that we’ve outlined below, you’ll be bidding like a pro in no time!
Do your research and familiarise yourself with the auction process
While you can find out everything you need to know online about the auction process, it’s good to attend a couple of auctions to become more comfortable. Until you go to an auction you’ll be unaware of how much pressure is involved with being a bidder, so it’s a smart option to visit at least one or two auctions to get used to the atmosphere. Alternatively, you can seek to employ a Buyers Agent to take the pressure off you.
Give yourself a limit and stay within your financial means
The most important rule when you’re wanting to buy at auction is to set yourself a limit, meaning ‘this is your walk away price’. If you go above your limit and get yourself into too much debt, your dream home then becomes a liability. You don’t need the stress of struggling to make the mortgage repayments to detract from the pleasure of owning a beautiful home. However, walking away knowing you would and could have still paid more within your budget is not ideal either. Be smart and don’t let pride get in the way of a good purchase.
Always get there early
You want to get to an auction at least half an hour early so you can have a final walk through the property, as well as register to bid. This also gives you a chance to determine how interested other parties appear in the property and could also be buying at auction. It’s key to know who you’re up against when seeking to buy.
Control your emotions
When you are involved in an auction you have to be fully in control of your emotions, because if not, emotions will cost you money. Don’t get carried away when you’re bidding and pay more than the property is worth.
Don’t ever bid against yourself
If everyone else has stopped bidding and you’re the highest bidder, don’t ever increase your bid, even if the auctioneer puts you under pressure. As long as your bid remains the last highest recorded bid, you’re still in the driver’s seat. A couple of different scenarios could unfold; one, the hammer falls on the third call and you’re buying the property. Two, the property gets called three times and it’s get passed in, you then have the opportunity to negotiate with the seller.
Ask someone you trust to do the bidding for you
A smart idea at an auction is to ask a close friend or family member to do the bidding for you, to avoid exceeding your limit. You just need to tell them your maximum bid and be sure to stick to it. Alternatively, you can seek to employ a buyers agent who will strategically bid on your behalf in a clever way, this will only strengthen your chances in locking in that lovely home you what, within your budget and well worth the investment.
For further tips on how to win at auction or different auction tactics to use when buying a home, contact your property sales specialists at One Agency Gamarra & Co.