Common auction bidding misconceptions
By | 29th Sep 17

Everyone loves attending auctions on the condition it’s not their home!

Everyone loves attending auctions on the condition it’s not their home!  The theatre, the drama and the anticipation are what drives people to stop, park and watch. So we think it’s interesting to see the different strategy styles people enlist when they go to bid at auction. Some are really smart and others are questionable! There are some proven and tested strategies but what should you do when you have every aunt or cousin giving you “winning” strategies in the lead up to an auction? You trust the experts!

1.Making the first bid means you won’t win

Have you been told that first bidders are never usually serious buyers? In some cases yes, but should you be basing your whole auction strategy on just this thought? No. In some cases people register to bid and end up not bidding on the day – if you are serious, don’t be afraid to start the bid as you may just be the only bid.

2.Think big – make that strong bid and silence your competitors

If you chose this strategy, whatever you do, make sure you know your budget and the real value of the property. If you feel really strong about purchasing, entering with a higher than expected bid may surprise many of your competitors. Be wary if this doesn’t work for you – make sure your emotions are in check and that you continue to bid with your budget in mind and not your ego to win.

3.Stay silent and come in with a final bid

We won’t say we haven’t seen this happen before but it’s not the strongest strategy we recommend for our clients. You have to remember bidding can commence and continue without the property being brought on to the market. More competition means that owners will be more inclined to bring the property on the market – with less competition it’s often properties get passed in. In this case, the final bidder will have the opportunity to negotiate.

4.Counterbid as soon as someone bids against you

When we mention counterbid, this does not necessarily mean that you have to call your bid the split second another person has. You can wait a few minutes, wait some seconds, but psychologically being able to counter bid gives the signal that you are willing to go on with the process.

5.Using a buyer’s agent to bid on your behalf

If you have missed out on auction, have had a negative experience in the past or have not bid at auction before there is an option for you. As buyer’s agents, we attend and purchase property for our clients every day of the week. We have proven strategies and relationships with real estate agents to inform you and are impartial to the emotions when purchasing.

If you would like to know more about our range of services, we’d love to hear from you: buyer@advantageproperty.com.au

 

 

Advantage Property Consulting is a family run business with over 17 years of experience in the real estate industry. Our director, Frank Valentic is often guiding and advising buyers on Channel Nine’s favourite show, The Block.