Having attended numerous auctions during my real estate career, they come as second nature to me, but I’m often asked by people who are thinking about buying at auction, how the process actually works.
Here are a few simple strategies to help you get through that first auction. Even if you’re not the successful bidder at the end, you’ll have gained good experience by following these steps leading up to and on the day.
The first step is to make yourself aware of all of the involved costs and fees before you decide to buy – stamp duty, conveyancing and transfer fees etc. You also need to get your finance in place, so figure out what you can afford to borrow or spend, then do your property searches.
If you’ve seen the home you want but you’re nervous that it’s being auctioned, talk to the selling agent beforehand about the property and bidding process. If the auction isn’t being held at the property, make sure you’ve done an inspection (even if you’ve done other inspections) close to the auction date so it’s fresh in your mind on the day.
If you’re happy that the property is what you want, and you’re financially equipped to bid, register for the auction and read all of the necessary paperwork before the day. The better educated you are on the process the better.
Arrive at the venue slightly early so you can take in the atmosphere and calm any nerves you might have. Get a good position and make sure you can make eye contact with the auctioneer.
Putting in your first bid can be overwhelming, but don’t be put off by other bidders. There’s nothing to be scared about if you’ve got your maximum price in your head, and you stick to it while you’re bidding.
The important thing when bidding at an auction is to have already built up a relationship with the selling agent or auctioneer – that way they won’t miss you during the heat of the auction, and you won’t feel uncomfortable bidding or talking to them after the auction is over.
Happy bidding to you! If you want advice on any of the auction properties we have listed currently, or the process in general, please don’t hesitate to contact me.