Auctions can be quite unnerving for both buyers and sellers.
They can be filled with drama and intensity depending on the skill of the Auctioneer, and the number of qualified buyers bidding.
There is no right or wrong way of knowing or having the right strategy, but the one thing you can do is be prepared.
If you are going to be bidding, do your research on the property thoroughly. Know what similar properties have sold for so that you can budget accordingly.
Always inspect the competition so that you know that the property going to Auction is worth buying. You will also then be able to anticipate the interest in the property by knowing what sort of buyers will be attracted to it.
Auctions are great for Sellers as an “unconditional” contract of sale is the ultimate when selling your home.
So with that in mind, make sure you are able to bid unconditionally knowing that your finance is approved and that you have the necessary deposit required.
Auction Terms and Conditions
Make sure that you understand the terms and conditions of sale, for instance, that the settlement date will suit you.
If it does not suit you then you need to get hold of the selling agent so that you can negotiate a different date if you are the successful bidder.
The selling agent will normally organise the documentation in advance for you to sign with the changes that you require.
Make sure you have done your building inspection and other specialist reports as required before the Auction, and that you are satisfied with them.
Make sure that the salesperson knows that you are interested.
Show confidence and bid first. This way you give the impression that you are interested and the Auctioneer will notice you and not miss your bid
When the bidding reaches the sellers reserve the Auctioneer will normally say something along the lines of “Ladies and Gents we are on the market”
This is when you need to bid once the last person has bid…..the Auctioneer will give fair warning that the property will be sold by saying “Going once, going twice”…this is your chance to secure the property so bid then.
Be patient and pick the moment but try not to buy with emotion and over what you think the property is really worth to you.
The best way to gain Auction experience is to attend a few and watch and learn.
Or contact a Buyers Advocate and get useful information as you travel the Auction road to eventual success.