Auctions are very different to regular sales. As well as being full-on and fast, they are unconditional. When that hammer falls, the property is SOLD.
Preparing well for that fifteen minutes of auction action is essential for buyers.
As soon as the hammer falls at an auction the property is sold. Picture: realestate.com.au
While many buyers seek comfort in the protection of finance clauses, building inspections and cooling off periods, those who fall in love with an auction property face the prospect of an unconditional purchase.
Auctions are a nerve-wracking experience for most people. Preparing to bid with confidence requires a plan, it also helps to go in armed with a sensible top end figure. This number should take into account a combination of comparable sales, a competitive position to challenge the observed level of interest, and a limit to reflect the buyer’s risk-profile and budget.
Get in position
On auction day the strongest bidders position themselves where they can see the auctioneer and the competing buyers clearly. They bid with confidence and they don’t consult other people.
Giving the crowd the impression that you have ten million dollars in your pocket can go a long way! And donning a pair of dark glasses is just the start of the intimidation game.
Giving clear and loud bids in rapid succession can make all the difference. A clever bidder’s job is to shake off the competition and shorten their thinking time. Other bidders who are less prepared and considering making higher bids will struggle to keep up with a quick-fire and confident bidder.
A sign of good bidding is when other bidders are reluctant to continue bidding – despite their financial ability to do so– due to the perceived dominance of the strongest bidder.
Next up, find out about passing in at auction.
Cate provides opinions based on current market conditions. These opinions should not be treated as investment advice. Always obtain advice based on your individual circumstances.
