Prior to Auction Day
- Know your ‘walk-away’ price. Use your research and budget to help you identify your limit and stick to it.
- Contact your Mortgage Broker or Bank well in advance, have your finance already in place and attend the auction ready to write a 10% deposit cheque.
- Attend some auctions beforehand to experience the atmosphere and observe different bidding strategies. Don't be afraid to ask advice from the real estate agent.
- 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
- Don't be afraid to start the bidding. It's not about where you start but where you end.
- 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 in the eyes of your competition.
- 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.
- 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.