Ten Tips to be Ready for Auction: Part Two

Take bidding at auction from queasy to easy with our top ten tips, as shared by Svetlana Thorpe from Sydney’s Thorpe Conveyancing.

How to win at auction: Part Two

Auctions are an ever-popular way to sell property. Bidding in an auction, though, can be a stressful experience.

If you haven’t read part one of this series about taking bidding at auction from queasy to easy, you’ll find it here. To recap, tips one to five were:

  1. Do your research
  2. Organise your finances
  3. Hire a legal adviser
  4. Organise your property inspections
  5. Hire a buyer’s agent

These five are a solid start, but there are five more to really take the stress out of bidding at auction.

Here are some more tips to round out Thorpe Conveyancing’s guide to bidding at auction:

6. Register your details on auction day

Number six is short and simple but vitally important. When you arrive at the auction, register your details with the real estate agent. Without registering, you won’t be able to bid. Bring some form of an ID with you, a driver’s license or passport, to help the agent verify your identity.

7. Find a good spot

You will be part of a crowd when it’s time to bid. You want to have a suitable spot. Auctions can take place in several different locations, depending on the weather. Most auctions are outside the property, but they can be inside or even at the agent’s office if the weather is inclement.

When you arrive, take a walk around the area to scope out the best place to stand when the time comes. The best spot for serious bidders is close to the front. That way, you appear confident and are easily noticed by the auctioneer. The very best spots put you in a visible position that also allows you a good view of the competition.

8. Stay calm and cool

You want to appear confident, but you must keep your head. Have your highest price in mind and stay cool. Even if bidding gets heated, stay in control and focus on your budget.

It’s the auctioneer’s job to get the highest price possible for the property. Don’t let them stir you up! It’s your money and you mustn’t spend more than you can afford or you will run into problems.

9. Be ready to sign the contract

You want to make sure that you are ready to sign a contract. That doesn’t just mean having a pen handy, but being prepared to fulfil your obligations. Your obligations mean that you have to be able to pay the 10% deposit (sometimes you can negotiate it down to 5%, but you must do that before the auction) of the purchase price. You should arrange to have a personal bank check with you, or if you negotiated beforehand, you could pay the deposit as an electronic funds transfer.

10. Practice

Attend as many auctions as you can. The more auctions you attend, the better idea you get of what happens on the day, the process, and what to expect. Attending prior auctions lets you relax and observe what is happening without the pressure of having to bid yourself.

Put it all together

For a full recap, here are the ten tips:

  1. Do your research
  2. Organise your finances
  3. Hire a legal adviser
  4. Organise your property inspections
  5. Hire a buyer’s agent
  6. Register your details on auction day
  7. Find a good spot
  8. Be ready to sign the contract
  9. Practice or attend a few auctions before you bid

Put all these together and auction day will be a breeze. Remember, though; there is never any guarantee that you will win. These tips will give you the edge, but if another bidder is willing to pay more than you are, they will win.

If you are beaten, odds are the other bidder overpaid anyway. Give yourself a pat on the back for avoiding such a mistake. Think of it as more practice and head to the next auction. Happy bidding!

Thorpe Conveyancing provides reliable, cost-effective conveyancing to home buyers and sellers in Sydney and beyond. Get a quote for our services today.