Auctions can be intimidating and there are times you cannot help but lose yourself in the adrenaline, eager to outbid a rival buyer. While bidding has its fair share of risks, with the right strategies in place, you’ll be able to obtain your dream home without paying more than you should. There are certainly easier and more convenient ways to buy property other than auction bidding, but it still offers some benefit to the buyer.
According to Century 21 chairman, Charles Tarbey, auctions are ideal for Canberra investment property buyers who have no qualms paying the fair market value. This property purchasing route is final and executory, so that “on the fall of the hammer it’s yours.” He also added that vendors changing their minds are particularly common during private sales, which in itself is risky for the buyer. Some sellers may accept another offer at the last minute, cutting off any opportunity to negotiate. At auctions, however, you can assess your bidding rivals and have a clear idea of your winning chances.
Each auction is different from another. More often than not, the results are dependent on your mindset and the strategies you employ. Below are helpful tips that will help you succeed at any property auction.
1. Do not bid in haste
Experts advise to let the bidding progress until it reaches the latter stage. That is when you come up with a strong bid. This gives you the perfect opportunity to measure your rivals’ bidding capacity and find information about the property’s market availability (after reaching the reserve price). In the course of waiting out, you’ll be able to identify bidders who are just there for a good bargain.
2. Be mindful of the market value when bidding
These days, it’s easy to know values and estimates for certain types of properties. From bank apps to local listings, all the information we need has already been supplied by the Internet. That is why bidding low from the get-go is not a good move.
Serious buyers at an auction will already have known the worth or estimated price of each property that’s up for grabs. These bidders, especially the seasoned ones, have come prepared and you best expect stiff competition. A great way to eliminate low bidders, and much of your competition, is to start off with a price close to the highest possible price right away. Your first bid should immediately make a great impression.
3. Go with an even number
Avoid odd numbers at all costs. One of your competitors will always be prepared to add that extra $500. Whereas if you consistently bid with an even number, you can go in above anyone who tries to derail the bidding with small augmentations. Be the one to put in that extra $500 and immediately outbid the competition.
4. Be quick and confident when you counter bid
Bidding is a fast process, and if it happens one after another, you’ll know just how serious the bidders are. Use this as a chance to size up your rivals and their bidding capacity. Show your own seriousness and keep up with the pace so you don’t fall behind.
5. Stick to the budget you set
Many buyers make the mistake of offering the maximum price despite not having the means to pay it. Whatever budget you come in with, make sure you stick to it throughout the bidding process. Remember that there is no point in exceeding your budget, much as you are dead-set on a particular property.
Don’t Put Your Eggs in One Basket
You can participate in as many auctions as you can, but if you feel like you’re losing at every turn, then shift your perspective. Property bidding is not all there is. There are many ways to obtain your dream home or investment property. Enlist the aid of an experienced buyer’s advocate in Canberra to better explore all the other options available to you.
About Mike Thornton
Experienced content creator and online marketing specialist who writes about a wide range of real estate topics, from off-market properties to auction biddings. Currently associated with Canberra Property Buyers Solutions, a team of independent buyers agents offering quality guidance and representation to homebuyers looking to purchase a residential or investment property in Canberra.
