Bidding at auction
Bidding at auction is a nerve wracking experience for most people.
We have helped hundreds of our clients successfully purchase at auction and have put together a list of useful tips and strategies to ease the stress and help you feel confident bidding on auction day.
If another buyer has significantly deeper pockets than you do there really is nothing you can do to improve your chances of success. However if it’s a close race to the end, adopting certain strategies can be a useful way of improving your chances of coming out on top – and not paying too much at the same time!
But first, before you get to auction day, you need to be prepared.
Before auction day
And it surely goes without saying, before bidding at auction – make sure your bank finance has been approved and you have this in writing from your lender!
Also don’t forget, if you are the successful purchaser at auction, you’ll be required to pay a deposit when you exchange contracts – usually 10% unless otherwise arranged.
On auction day
When a property passes in
If the reserve price has not been met at the auction, don’t let the auctioneer or agent to pressure you to bid higher – and against yourself. It is better to have the property pass in and be in the box seat in the negotiation process with the agent. As the highest bidder you have the first right to negotiations and can often come up with a mutually acceptible price in the moments after the auction.
Good luck on auction day. We hope you find these tips helpful. If you are still feeling unsure and would rather a professional do the bidding for you, talk to us about our auction bidding service.
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