10 Hot Tips for Buying at Auction
You might prefer to purchase by private treaty, but the home of your dreams is up for auction. Here are a few tips that might help.
Prior to the event
- Use your research and budget to help you identify a ‘walk-away’ price. It’s in your interest to keep this a secret from the agent, so they don’t use this information to help the vendor set their reserve.
- Have your finance already in place and attend the auction ready to write a deposit cheque.
- Attend some auctions beforehand to experience the atmosphere and observe different bidding strategies.
- Organise any amendments to the contract, such as a longer settlement period, prior to the auction. Talk to the agent and get agreement from the vendors in writing.
On the day
- If you’re going to start the bidding, start low.
- Project confidence – make the other bidders think you have no limit.
- Make your bids fast and assertive. Agonising over your next bid is a sign of weakness.
- Call out your offer in full (i.e. say “$350,000” instead of the increments, i.e “$5,000”).
- If it’s going to pass in, make sure you’re the highest bidder, as this usually allows first right to negotiate (whether this is a legal right or courtesy varies between states).
- Stick to your ‘walk-away’ price. It’s better to feel the short-lived disappointment of missing out on a property you love than the long-lasting remorse of paying too much.
Buying through One Agency As with all of our clients, One Agency buyers can expect five-star service and plenty of hands-on attention. Our agents will work closely with you to find your perfect property and meet your specific real estate goals. Deal directly with the Principal The One Agency concept enables individual agents to be their own boss, retain complete control and offer a more personal service. You’ll have peace of mind knowing that you’re dealing directly with a dedicated Principal who has embraced the opportunity to run their business in their own way. As a buyer this means a greater level of care and commitment.
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