How to WIN an auction
You’ve got your eye on a property that is definitely your dream home (or dream investment!). There’s only a few things standing between you and having those keys in your hand- i.e. a few other very interested buyers and an auction process.
While there is no way of predicting which way an auction will go, there are a few tricks you can have up your sleeve to tip the odds in your favour.
Believe it or not, the way other bidders perceive you can actually play a role in whether you come out on top in the bidding war. So here’s a few things to keep in mind when attending an auction:
Nothing helps you more in a high pressure situation like an auction than a bucket load of confidence.
This lets other bidders know that you mean business and are set on buying this property, which may give you an edge when it comes down to a bidding war. Stay confident while you bid, but obviously don’t push too far past your budget.
Conversely, hesitating or seeming unsure as to whether you should continue bidding is a sure fire way to let other bidders know you have reached or are close to your budget benchmark, which could give them the confidence to push just a little bit further and take you out of the running.
Dress to succeed
It may sound strange, but dressing in a business-like fashion might give other bidders the impression you are wealthy. This matters because everyone is essentially sizing up their competition and assessing whether they have a good chance at coming out on top. If you appear to have more in the bank and are confident with your bids, there is a chance other bidders may bail out earlier if they don’t think they will beat you.
Leave the family at home
Don’t make a high pressure situation even more so by bringing the kids along. Having them there looking up at you with their big eyes that are pleading with you to keep bidding may be your ticket to a very large mortgage indeed. Plus, you need to limit distractions so you can focus on the bidding process, which can be very quick and confusing if you don’t pay attention.
Stick to your budget
Don’t get caught up in the heat of the moment and push past the price limit you had originally set for yourself. While this may secure you the property you want, it could also land you in much bigger debt than you planned, which has an on-flow effect into your everyday life in the form of bigger repayments.
Don’t be afraid to pull the increments down
While most auctioneers will set increments for the bids to go up by, it’s worth trying to lower the increments with your own bidding if the price is approaching your budget quicker than you’d hoped. By lowering it to an odd, in between number ($13,000 instead of $20,000) the auctioneer may take your hint and drop the increments to $10,000 for easier maths. This may even save you from paying too much for the property if you end up winning.
While these are some handy tricks to use at the auction, there is no way to guarantee you a property. In the end, it really does come down to who wants it the most and who can afford it.