The auction process can be stressful however being armed with a solid strategy may help you to come out a winner on the big day. Every auction is different, hence you need to adapt quickly to the environment. Depending on the market some common strategy’s people use are:
- Know you budget and bid aggressively; increase bids by $1,000 more than your previous bid.
- Send the message that you have plenty of money with a knock out punch. If the agent has been quoting $800,000 plus and you know the property is worth $950,000 – $1,000,000, open the bidding at $950,000 or let somebody start off at $800,000 and when the auctioneer calls for a rise of $10,000, offer $950,000. Not everyone will be ready for this and often knockout bids can have the desired effect of eliminating the competition hence try to quickly win the auction when it starts.
- Offer a bid on the agreement something is included e.g. you might be happy to go $5K more if the out door spa is included or the current owner(s) might want to lease back the property.
Consider making an early offer and try and bypass the auction process completely.
If you know the true value of a property there is no harm in trying to negotiate before the auction.
- Make the offer time conditional to place pressure on the vendor.
- If you want to make an offer before auction day, make the conditions appealing to sellers.Unconditional offers (that are not subject to finance, building inspections etc) are always tempting.
Professional bidding assistance.
If keeping a poker face and bidding at auction is outside your comfort zone, or you simply want to secure expert advice consider using a buyer’s agent.
Buyer’s agents don’t sell houses like normal real estate agents they only represent buyers. Their job is to secure aproperty for the best possible price negotiating favourable conditions to their client. Buyer’s advocates bid at auction on a regular basis within your area, which will improves your chances of success.
Buying your first home or investment can be a difficult process that many find over whelming, hiring a buyers agent can increase your chances of owning property portfolio that will help you achieve your financial goals sooner. For a consultation free meeting on getting into the property market contact us via email or call us on 1300 00 WISE.
Senior buyers agents at Wise Real Estate Advice.