Top tips for buying a property at auction
Home auctions offer a great chance for homebuyers to snap up a bargain. But in-depth research, preparation, and careful attention to auction psychology are essential for best results.
If you’re an auction first-time buyer, it’s important to be fully aware of auction bidding tactics and auction tricks of the trade. You can maximise your chances of success by ensuring the following:
1. Be prepared
Research the prices of similar properties that have sold in the Northern Rivers and Tweed region to get an idea of the likely selling price. See if you can find out why the owner is selling the property during the house inspection.
2. Draw up a budget
Prepare your finances and know your budget limit. Under no circumstances should you allow yourself to be convinced to pay more than you can afford.
3. Understand auction psychology
Gain an understanding of how auctions work. Know the procedures and what’s expected of you as one of the bidders. Resist the pressure to bid your highest offer too early in the auction. Even how you dress is psychologically important. Try not to stand out too much, because otherwise the auctioneer may single you out and try to drive up your bids.
How the pros win
Unless you have real estate experience, you may find you lack the knowledge and time to do these essential research preparations. If this the case, why not hire a buyer’s agent to do the work for you? Simply put, they act on your behalf and work for you at the auction.
Their invaluable service offers:
Experience in the business
A buyer’s agent usually has had many years of experience in the real estate business. They make it their business to learn everything about the market, understand its fluctuations, and know how you can get the best price.
Extensive preparation
A professional will spend a great deal of time before the auction on preparation. They will have an in-depth knowledge of the local area’s median price for properties and the history of the sales prices of the property you are hoping to purchase.
Keeping cool under pressure
A buyer’s agent succeeds by staying calm under pressure. Auctions can become emotional and people can at times pay more than they wanted for a property. A professional will stick closely to a planned bidding strategy to avoid being caught up in the moment.
Knowing the auction tricks of the trade
Having a buyer’s agent on your side means having someone who understands auction bidding tactics. These strategies include how to slow down the auction to the pace that suits you.
They know when, and just as importantly, when not to bid. It is important not to show your hand too early. It may be the difference between paying what you want and missing out altogether.
Awareness of auctioneer’s methods
The majority of auctioneers act ethically and legally. However, all wish to maximise the price for their clients. It pays to be aware of the pressure tactics. In this case, it’s great to have a buyer’s agent on your side who is not swayed by these strategies.
Someone you can trust
Hiring a buyer’s agent to do the research, preparation, and bidding for you means you have someone experienced and trustworthy, who will get you the best price possible.
Hiring a buyer’s agent to bid on your behalf will maximise the chances of you purchasing the right home at the right price. This will save you time, disappointment, and the possibility of paying too much for your dream home. Contact us for more information on how we can help you buy property at an auction.
