Mistakes People Make at Auction
By | 7th Nov 19

There’s nothing worse than going into an auction unprepared. Some people get caught up in the theatrics, which can end up in a poor decision. We have attended thousands of auctions and have seen how a lack of strategy can either see someone buy at an inflated price or losing to someone who came prepared.

 

1.Not being the final bidder

If you have found your dream home and it is within your budget don’t hold back on bidding at the end of an auction as long as it is in your budget. Some people wait until the property passes in, with the hopes that they can negotiate with the agent after. What they don’t know is that the final bidder before the property is passed in gets the first right of refusal to negotiate with the real estate agent. 8 out of 10 times, an outcome is achieved so if you’re serious make sure you are the last to bid.

 

2.Not being firm on your final bid

If you are bidding with your partner make sure that you choose and understand your final bid price. We have seen people hesitate on bids by discussing with their partner throughout the bidding process which auctioneers see as an opportunity to stretch their final bid. If you play your upmost bid, be assertive so that if the property passes in, you can negotiate strong.

 

3.Starting an auction too low

This is something we see quite often. Starting too low may not always get you a lower price. A low starting bid allows more people to be involved in the auction process and with enough momentum it may push the price of the property higher with emotional bidders.

 

4. Setting a whole or round figure as your budget

It’s amazing how many people set their budget as round or whole numbers. There’s nothing more disappointing than missing out on your dream property by $500 or $1000. Understand your budget and it’s flexibility in your mind before going to an auction. Sometimes a rigid number such as $800,000 can see you lose your dream home if it sells for $801,000 for example.

 

There’s no better time to engage with a Buyer’s Agent to help you negotiate on your behalf or Vendor’s advocate to help you sell your home. With the current market, competition has been high but at the same time we have been able to secure many great deals for our clients to meet their requirements. Call us today on 1300 239 901 to make a time for your free strategy consultation.