After attending a few house auctions, you soon realize how competitive these events can be – and unless you have a little inside information, your chances of winning a bid without over-spending will be slim. Below are some handy tips that will help ensure that you are able to get the edge – and the house – you want.
1. Dress and Act the Part
Although there is no set dress code for attending house auctions, presenting yourself well will help create the perception that you have the financial means to outbid the competition. Don a suit – borrow one if you have to – to ensure that you look as sharp as possible. Although this may sound like a lot of effort simply to win an auction, consider borrowing or hiring a luxury vehicle to drive to the auction site. Standing next to it in a suit will give other bidders the impression that you have the cash to win the auction.
2. Draw Attention to yourself at the Start of the Auction
This can easily be done by asking the auctioneer a question along the lines of, “Do any body corporate levies apply to this property?” or “Are there any plans for development in the immediate area of the property being auctioned today?” Questions like these have the ability to unnerve inexperienced bidders or even those who are more experienced hesitate about placing bids.
3. Don’t Get Attached
Before placing your first bid, ensure that you know exactly how much you can truly afford to spend. It’s no use getting attached to a property if you are going to have to exceed your pre-determined budget to win the auction. If you think that you are going to become too emotionally attached to the property in question, it is recommended that you send someone else to the auction in your place. While many people send a trusted friend or family member to do the bidding, you can consider the option of hiring a buyer’s agent as well. These professionals have extensive auction and bidding experience, which enables them to take a lot of the stress off your shoulders.
4. Call Full Numbers and Break Down Bids
Always call your bids with full numbers. For example, instead of $1,000, call “$501,000” so that other bidders can hear exactly where the bidding is. In many cases, hearing the full number of the bid is enough to put a lot of people off from placing further offers because they realize just how much money they will be spending if they win. Breaking down bids can help slow the auction process as well. For example, when auctioneers ask for $10,000 bids, offer $5,000 to slow the momentum.
Keeping these points in mind when you attend your next house auction will help give you the edge of the majority of bidders who will be in attendance. Bidding with your budget in mind instead of your heart will also prevent you from spending more than you should on auction day.