Anyone can put their hand in the air, right? So why hire a professional to bid at auction?<\/strong><\/p>\n According to one such expert, it\u2019s because buying real estate<\/a> under the hammer is much more complex than simply bidding. It can also be a scary prospect for many people, especially for those who\u2019ve never done it before.<\/p>\n Melbourne-based buyer\u2019s advocate, Cate Bakos, says buying at auction requires carefully crunching data to settle on a limit, a clear auction day strategy, a cool head and even a bit of psychology.<\/p>\n Cate Bakos explains the auction bidding process:<\/strong><\/em><\/p>\n And as with any other life skill, practice makes perfect, so experience matters.<\/p>\n So, she says, it makes good sense to hire someone who knows exactly what they\u2019re doing.<\/p>\n Bakos says those who employ a professional to bid on their behalf generally fall into three categories\u00a0\u2013\u00a0<\/span>those afraid of public speaking, those who recognise they\u2019re out of their depth and people who are time-poor.<\/p>\n \u201cWhy wouldn\u2019t you hire a professional who does it several times a week? Who knows all the tricks of the trade and has the ability to get a result?\u201d she asks.<\/p>\n First comes setting a limit.<\/p>\n \u201cAs a professional and experienced bidder, I always have a maximum figure established before I head to the auction,\u201d Bakos says.<\/p>\n \u201cThe figure is based on a serious analysis of a property\u2019s features and merits, it\u2019s a combination of factors, including recent comparable sales, market sentiment, time of year and vendor motivation.<\/p>\n \u201cI glean all information possible and then suggest a likely range to my client, so that a competitive limit can be set,\u201d she says.<\/p>\n A professional bidder will figure out a maximum price with their clients. Picture: Getty<\/p>\n<\/div>\n Bakos uses an \u2018X, Y, Z\u2019 pricing<\/a> approach with her clients.<\/p>\n \u201cThe X figure is where it should sit, based on comparable sales data, Y is where you sit with competition and Z is the client\u2019s stretch figure,\u201d she says.<\/p>\n On auction day, a professional will be armed with a plan and call on all their experience to read the crowd, to outwit and outlast them all.<\/p>\n How to learn from auction mistakes:<\/strong><\/em><\/p>\n \u201cAfter over a decade of auction experience and 800 auction bidding assignments, I\u2019ve learnt a lot about auction-bidder behaviour. Just because another buyer has a stronger budget, doesn\u2019t necessarily mean that they will be the winning bidder,\u201d she says.<\/p>\n \u201cWhen I bid, I don\u2019t refer to my clients. I don\u2019t stop the auction. Nor do I take any liberties with additional bids over my approved limit. I bid strongly and strategically at the right moments, and my bidding increments are decided on at a moment\u2019s notice, while I digest the mood of the key bidders at the auction.<\/p>\n \u201cIt is a game of confidence and strategy and the object of the game is to secure the property at or below the client\u2019s limit,\u201d Bakos says.<\/p>\n
\n <\/p><\/div>\n Realestate au <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"![\"auction](\"https:\/\/i0.wp.com\/www.realestate.com.au\/blog\/wp-content\/uploads\/2017\/11\/01121351\/auction-strategy_2000x1500.jpg?resize=2000%2C1500&ssl=1\")
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