Leading buyers advocate Cate Bakos explains how to nail an auction as a buyer.
Auctions are daunting for most people, let alone first-time buyers, and even those who aren’t intimidated by a large crowd or public speaking can go to water when the auction bell rings.
There are some key steps you can take in order to put yourself in the box seat on auction day that will not only give you an edge, but help you avoid making any costly mistakes.
Auctions can be loud, stressful and over in a flash, so be prepared. Picture: AAP/Ryan Osland
Know your limit
Having a firm idea of what the property is worth is the first essential step to success.
Despite the fact that many buyers get hung up on fine-tuning their bidding strategy, being aware of the likely selling price before the auction day is a significant step in the right direction.
This preparation enables you to formulate a sensible stretch price before auction day and prevents any thinking on the spot or getting carried away when the auctioneer is using pressure tactics to get a great result for the vendor.
Once a firm price limit has been set, you can then prepare for the excitement of the auction.
Being mindful of the emotional toll of the auction process is important, particularly for buyers who feel anxious at the thought of an auction.
Stay calm and confident
From avoiding caffeine and a big breakfast, to carefully selecting the right person to accompany you, you can ease the emotional and physical impact of a process that can otherwise be quite stressful.
Being aware of body language differentiates a professional bidder from an inexperienced bidder.
Being able to control any nerves and appearing to bid with total confidence is one skill, but being able to pick up on other buyers’ nerves and body language signals can be very powerful. Nervous buyers – and particularly those who are approaching their bidding limit – are usually obvious to an experienced bidder.
Know the signs
Looking for signs of agitation, anxiety and last-minute budget discussions with partners and parents can give a valuable hint that an opponent is running out of strength (and probably money).
Some buyers are so ill-prepared for the intensity of the day that they opt out of the bidding process despite a reasonable budget.
A successful buyer will often appear to be calm, strong and hard to read.
Dressing well will boost your confidence on the day. Picture: Daniel Aarons
Dress to impress
Dressing well is a key ingredient for bidding strength.
When a buyer feels confident, they appear confident.
Whether it be heels and a jacket or jeans and runners, wearing something you feel great in means one less thing to worry about.
Donning a pair of dark glasses can up the courage factor and lets an assured bidder glance sideways at the entire auction crowd.
The final and most valuable tip is for buyers to bid loudly, boldly and quickly.
No bidding style quite matches a firm bidder who positions themselves in middle of the auction within clear line of sight of the auctioneer, and then throws out clear, fast-paced bids.
Kicking off the auction with a suitable opening bid also asserts confidence and control.
There is some truth to the idea that there is a strong correlation between the first bidder and the successful buyer at auction.
Visit Suncorp’s handy home buying guide for more tips about auctions and buying a home.
