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Advice, Residential

How to bid at auction

It can be an anxious time when you’re looking to buy your first home. Between finding the right mortgage broker, busy open for inspections and hot competition for your dream home, it’s not unusual to be a bundle of nerves until you finally make the move. If you don’t know how to bid at an auction the whole process can seem a bit overwhelming. Here are our top 5 tips to help you bid at an auction like a pro.

  1. Exude confidence
    Strong body language is very important at auctions as it signals to your competition that you’re there to play. Stand towards the back of the crowd with a good view of the auctioneer and your opponents, and keep your body language confident – stand tall, don’t hide and keep your head up.
  2. Plan ahead
    It is crucial that you go into the auction with a plan to avoid getting caught up in the heat of the moment. This includes your ideal figure as well as your maximum bid, that way you’re not going to get in over your head.
  3. Have a strategy
    There are lots of different strategies that you can employ in an auction, so figure out which one you’ll go for before you head in. Whether you want to bid in odd increments (such as $5,375 instead of a round $5,000) to buy time and throw off the competition, or you plan on bidding immediately after your opponents to give them the impression that you’re not going to give up until you win, a great strategy can help get you over the line at an auction.
  4. Watch your competition
    You’re not bidding in a vacuum, so pay attention to the crowd throughout the auction. If there is only one other bidder you might want to play your cards close to your chest in the hopes that you can negotiate with the seller for the best price. However, if there are a lot of bidders it pays to be aggressive with your bids and open strong to weed out the time wasters and show the room that you’re serious about buying.
  5. Bring in a proxy
    If you’re not feeling confident about the whole process or feel like you will get swept away in the competition then you can absolutely bring in a proxy. Be sure to discuss your strategy and limits with them prior to commencing the auction so they know how far to take it.

Nerves can be expected when you bid at an auction, but a considered strategy can be just the thing you need to get you over the line.

 

Advice, Residential