When the property market is experiencing low stock and demand is high, auction numbers ramp up as strong competition helps vendors to get the best result.
But many buyers dislike auction – the crowds, the frenetic pace, the uncertainty and the pressure. If that’s you, these tips shared by real estate experts with The New Daily will guide you towards being a confident and successful bidder at property auctions.
- Get your ducks in a row. Wendy Chamberlain says, “under auction terms you have to complete the sale, there is no cooling off period. So you’ll only want to consider showing up and making a serious bid for a property if all your financial ducks are in a row first, including not just a deposit but pre-approval from your lender.”
- Don’t share your budget. “If the agents know your budget before the auction proceedings start, it can tie into where the vendor sets the reserve on the day. You won’t know where the vendor has set the reserve, but bidding is likely to start below that price and the auctioneer will have an incentive to get the most money for the property as possible,” explains Wendy.
- Take control of the bidding. Wendy says that being assertive and taking control is the best approach at auction. “You should try and take control of the increments of the bids. As an auction goes on the increments and the bids get smaller and smaller. Other buyers start to run out of budget and you can put yourself in the box seat by controlling the increments of the bid.”
But don’t worry if confident bidding simply isn’t in your skillset, that’s why Chamberlain Property Advocates are available to bid on your behalf!
Chat to us about how a property advocate can help you sell or buy in the current market with confidence. Investment buyers can receive invaluable support and guidance through our Buyers Advocacy Service, and for landlords who are selling, our Vendor Advocacy Service helps vendors achieve outstanding results.
To book a free 20-minute consultation, simply click here and choose a time convenient to you.
