Property auctions can be high-pressure situations for buyers, particularly those unfamiliar with the process.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
And when the market heats up, so do the auctions.
NSW Illawarra-based buyer's agent Matt Knight, director of Precium, is regularly employed as a professional bidder at auctions throughout the region.
He offered some tips when bidding at auction in order to give you the best chance of winning.
*There's work to do prior to the auction. "Do your due diligence on the property, which includes having a building inspection done, and talking to council or consultants to make sure you know exactly what you're buying. That all has to happen before the auction, because it's an unconditional bid."
*Be finance ready. "If you're not confident, you're not going to win. And when it comes to actually being at auction, you need to have your full deposit ready, or negotiate any contract clauses that you need, well before the auction date."
*If you're unsure, seek a second opinion. "Have an extra set of eyes - it could be a family or a friend that knows more about real estate than you - look at the property if you're in doubt."
*Know your worth. "Assessing the property's true value, and what you can afford, is crucial. Make sure you know what the property is worth, and what it's worth to you.
"In a rising market, which is what we've been in, it's not like what's a bargain price, or what an ideal price is to buy the property. It's the price at which you're happy to walk away if someone buys the property for one bid more. You want to have no regrets."
*Be confident. "On the day, it's all about confidence, and being positive.
"Make good eye contact with the auctioneer, and be willing and able to make strong, confident bids up to your maximum price."
*Should bidders look to set the pace of the auction? "In a more normal market, I would agree. But in the past five auctions I've been to, I haven't needed to enter the fray because the pace was already set and very fast without me doing anything. In this market, bidding is normally strong, and people are not holding back very much."
*Manage your nerves. "If you are calm, confident and happy with the process... Decide beforehand that, 'this is going to be a great day, and I bought this house'."
READ MORE:
Brendan Crabb
I'm a member of ACM's national property team, covering the Illawarra and South Coast. Based in Albion Park, NSW, I write about exciting, interesting or just downright quirky properties that have been listed for sale, major sales, market trends, auctions and more. One of my favourite aspects of being a journalist is I believe everyone has a story to tell. What's yours?
I'm a member of ACM's national property team, covering the Illawarra and South Coast. Based in Albion Park, NSW, I write about exciting, interesting or just downright quirky properties that have been listed for sale, major sales, market trends, auctions and more. One of my favourite aspects of being a journalist is I believe everyone has a story to tell. What's yours?
