Helpful Tips for Buying Property at Auction
The thought of buying at auction can stress many would-be homeowners out. Auctions are inherently competitive, they require you to put yourself out there at every turn and there’s a lot of money at stake.
But auctions are a common way to sell property, so it pays to know what you’re doing. If you walk into an auction scenario “blind”, you might end up paying more than you’d hope or missing out on your chance to bid.
Here are our top tips for buying at auction so you can walk into the situation with confidence, comfort and know-how:
For those inexperienced with auctions, it can feel awkward to figure out the “rhythm” of the event. When should you bid? When should you “reveal” what you’re willing to pay?
It may seem logical to wait until the very end to bid, but this strategy doesn’t always work out. Sometimes, there’s a risk of an auction closing before a bidder has even had a chance to bid.
Ultimately, there is no one-size-fits-all strategy. Some agents have had success advocating the “last bid” strategy, while others suggest being heard from the start and trying to take charge of the auction itself.
Our suggestion would be to work with your agent to find the right strategy for you and the property in question. They’ll have a sense of what will be effective based on your personal style, the auctioneer and more.
The best way to make a first impression is to make it from the moment you’re seen. Experts say that appearance does matter at auction, and the research supports this.
Stone-faced business people, for example, tend to do well at auction. With your appearance, you can convey a sense of power and wealth – even if that doesn’t necessarily represent the truth. This can subconsciously deter competitors from trying to bid because they feel they won’t be able to outbid you.
You don’t want to pretend or be something you’re not, but research shows that it’s beneficial to bring your competitive face. Think of it like a job interview: You’re not there to be unpleasant, but you are there to win.
Like most things, preparation can be key when it comes to success at auction.
If the whole process and experience is new to you, it can be hugely beneficial to go to some auctions prior to the one you’ll be bidding at. You’ll get a sense of how the day unfolds, and come auction time, you’ll feel much more comfortable.
It also pays, of course, to know as much about the property and the auctioneer as possible. Consult with your real estate agent, and they will help to give you the edge through preparation.
At Mortgage House, we’re no strangers to the homeowner’s journey. It’s a long (but rewarding) one.
But don’t worry, we can help with that.
If you’re thinking of selling or buying a home at auction, you can contact us for advice about the best options for you.