Bidding at auction can be scary. Bidding, counter-bidding, and preparing your finances are important things to understand before auction day.
Fletchers auctioneer, Mark Fletcher, has some handy tips for first-time bidders to help secure a great home.
Mark says Auctions are a great way to buy real estate – they're transparent and in an open forum, but warns they can also be stressful, especially if it's your first auction experience.
"It's important to do your homework, have a clear plan in place and don't let other bidders intimidate you."
Here are Mark's tips to help you buy confidently at auction:1. Don't be afraid to make the first bid. Entering the bidding early shows other buyers that you're there to buy
2. Bid with confidence and determination
3. Be seen by the auctioneer – don't stand behind a tree or a car. Get in the game!
4. Counter-bid quickly. There's no benefit in waiting for the auctioneer to call 'first, second, third'. Plus, it's risky to wait until the last minute. If the auctioneer 'knocks it down' quickly, you'll miss out
5. Don't wait until the property is on the market to bid. If a property is passed in, you need to be the highest bidder to negotiate a purchase price. So, if you don't bid – you won't have a chance to nab your dream home
6. While it's important to have a budget, when it comes to the auction, you may need to spend another 5-10k to secure the property
7. Buying at auction is unconditional – so it's important to do your homework on the property prior to bidding. Building reports are a worthwhile expense
8. Have your finances ready to go. A 10% deposit is required on the day of the auction – plan how you are going to pay it.
9. Avoid having a set figure in mind. You may need to bid an odd number, like $507k to be the highest bidder
10. Don't panic! Bidding at auction can be a nerve-racking experience. Take a breath, try to relax and win your dream home
Good luck!
by Mark Fletcher in Miscellaneous
