Auction Nerves? Here’s 4 Top Tips to Bid with Confidence (and Beat the Competition!)
Auction Nerves? Here’s 4 Top Tips to Bid with Confidence (and Beat the Competition!)
One of the most common calls I get is from clients just days before an auction. They're always a mix of excitement and sheer terror, and the main question is always the same: 'Do you have any tips to help us win?'"
Auctions can feel daunting, but with the right preparation and strategy, you can significantly boost your confidence and your chances of success.
Here are 4 top tips to help you navigate the auction floor like a pro:
1. Do Your Homework (Before Auction Day!)
This is the golden rule. The more prepared you are, the less nervous you'll be.
Full Due Diligence: By auction day, you should have completed all your checks. This means your finance is unconditional, you've reviewed the LIM report, a builder's report, and ideally had your solicitor check the sale and purchase agreement. You should have absolutely no questions left about the property itself.
Know Your Absolute Limit: Decide on your absolute maximum bid and stick to it. This figure should be driven by what you can afford and what you believe the property is truly worth to you, not by the heat of the moment. Write it down. Tell your bidding partner. Do not go over it.
Research Comparable Sales: Look at recent sales of similar properties in the area. This helps you gauge the market value and reinforces your maximum bid.
2. Master the Auction Environment
Auctions are as much about psychology as they are about money.
Arrive Early: Get there well before the auction starts. This allows you to:
Register to Bid if you haven't already and avoid last-minute stress.
Scope out the Competition: Look for other serious bidders. Are there real estate agents bidding on behalf of clients? Who looks genuinely keen?
Find Your Spot: Position yourself where you can clearly see the auctioneer and other bidders, but also where you feel comfortable.
Understand the Auctioneer's Style: Listen carefully. They'll often try to build momentum, encourage higher bids, and create excitement. Don't get caught up in the hype.
Bidding Increment Strategy: Understand what increments the auctioneer is calling for. Sometimes, making an odd-numbered bid (e.g., $801,000 instead of $800,000) can throw off other bidders and show confidence.
3. Bid with Confidence (Even If You're Shaking Inside!)
Your demeanour can make a difference.
Be Decisive: When you bid, do it quickly and clearly. A firm nod or a raised hand shows you're serious and confident. Hesitation can signal uncertainty.
Strong Opening Bid: If you're bidding from the start, a strong, confident opening bid (not necessarily the lowest, but above the minimum) can sometimes deter weaker bidders.
Slow Down the Pace: If bids are moving too fast, you can try to slow the pace by holding back slightly before making your next bid. This gives you time to think and can sometimes make other bidders hesitate.
Don't Show Your Hand: Try to keep a poker face. Don't react emotionally to other bids. Let your confident bids do the talking.
4. The "Vendor Bid" and "On the Market"
These are important terms to understand:
Vendor Bid: The auctioneer can place bids on behalf of the vendor (seller) to get the price moving or reach a reserve. These must be clearly announced as "vendor bids." You cannot bid against yourself.
"On the Market!": When the auctioneer announces this, it means the reserve price has been met, and the property will definitely be sold to the highest bidder. This is where the real competition often begins.
After the Gavel Drops (or Doesn't)
If you're the successful bidder, congratulations! The property is yours, and you'll typically sign the sale and purchase agreement straight away. You’ll also need to make sure you have your deposit ready to pay on the day as well. We can help with that.
If you're not successful, don't despair. Every auction is a learning experience. You gain valuable insights into the market, pricing, and the bidding process. It means you're one step closer to finding the right home.
Remember, the goal isn't just to "win" an auction, but to secure the right property at the right price for you. With good preparation and a clear strategy, you'll be well-equipped to navigate the auction floor. Good Luck!
