Bidding at auction for the first time can often be a daunting experience. Here are some tips and strategies to ensure you are well prepared before and on auction day.
As a buyer you want guidance and a good salesperson masters the art of advising all of their clients. It's a balancing act and is typically the most contentious part of auctions, as the agent has to be non-judgmental about the assessment of the property value. The truth is, there is no exact answer about what a property is worth, and the price the owner will accept is constantly changing. A great agent will share market data, recent sales information and insights on other buyers' comments. They aim to be as open as possible, so they don't waste your time. However, there are no precise answers regarding what will happen on auction day.
As a buyer, it is always important to make your own judgments about a property based on your experience in the market, information provided by the agent and your own needs. The reserve price is rarely, if ever, disclosed. Advice and opinion on an expected reserve price will only create uncertainty if you are not confident about your own position. Always remember, when you are a registered bidder you always have the choice about what you are prepared to pay and offer for a property. Most of us have a price we would love to buy for, a price we think is fair, and the maximum price we would consider paying to obtain our dream home. You need to ask yourself "What is the maximum price I would offer for the home and will I be happy to walk away if it goes higher?" or "Will I regret it if I let this property go to someone else at this price?" Your answers should determine your actions.
Understanding needs and wants
The thing about auctions is it's not just about selling homes; it's about building relationships. As a potential buyer, it's important for an agency to have as much effective and productive contact as possible with you so you can be assured we are looking after your needs before auction day. Auctions bring out and intensify many emotions in us. It's important that you feel comfortable with any decisions you are making and know that your agent is working with you.
Keeping you informed
Market data is available to buyers, as well as access to building and pest reports*. It is important that you have open communication with the agent leading up to the auction. Our Auction Buyer's Guide provides strategies to help you prepare for auction day.
Auctions are like driving a car, the better you understand things before they happen, the more confident you can be in times of duress or tension. We can work with you to help you understand the auction process, so you can come prepared and bid with confidence.
*NB. In NSW, the buyer is required to organise their own building & pest inspection, should they wish to do so.
Practice builds confidence
Bidding at auction can be an intimidating process. If you’d rather be left alone while bidding, so you don't feel unnecessarily pressured, make sure you let the agent know. However, it is important you know that they are there to assist you and can provide vital information that may assist you during the auction.
When you register to bid, you could feel exposed by doing so. It can make you feel vulnerable. When you bid at public auction, you are publicly demonstrating that you like something and are interested. This is why it is so important to be fully prepared. If you are well prepared for an auction, you will likely also find that you will actually enjoy the atmosphere and the experience! Also, it’s important to remember that the other bidders are far more concerned with how they feel than what you are doing.
If you are unsuccessful on auction day, it may just be that it wasn't meant to be. If you gave it your best shot, you shouldn't walk away feeling like you have failed. Ideally, the marketing agent will demonstrate how much they care by offering condolences and also offering you other solutions going forward. They may suggest similar properties available for sale. They should continue to build and maintain a relationship with you by helping you find another property that you love just as much.
If you would like to know more about the auction process download our eBook - The Ultimate Auction Experience here: http://www.peterblackshaw.com.au/auctionexperience.html