I am sure you have been bombarded over the years with articles about how to bid at a house auction.
I am going to suggest a few simple tips you can implement and then show you how it plays out at a LIVE property auction I attended a couple of years ago!
This could have gone one of two ways!
In this video, I am bidding at an auction (which was conducted a couple of years ago) for one of our overseas clients on an amazing property in one of Brisbane’s blue-chip, northern suburbs.
The property was situated on 2 x 600 sqm lots, which is rare enough, however, you can actually create 3 x 400 sqm lots and build three separate houses!
These types of properties are lucky to come up once or twice a year in these blue chip locations, probably the reason there were 17 registered bidders and a decent crowd looking on.
So, we had to bring our A-game, which brings me to my first tip!
Tip 1 — Bring you’re A game
Look like you are there for business — dress for success.
Most buyers at the auction are casually dressed, but it is important to take it up a notch.
When I first met the agent on the day she instantly said, “Oh you must be an agent”, I looked and acted differently.
I always make a point of meeting the agency staff and importantly I also take the time to introduce myself to the Auctioneer and have a quick chat and I do it in front of everybody.
Body Language and image play a big part at any Auction and if you can get even the slightest edge it will put you in a strong position.
It’s like a good bluff in poker!
Tip 2 — A strong, quick opening bid
As I have mentioned, this type of opportunity is very rare, so the need for a strong opening bid was a must!
I don’t understand why Auctions take a while to get going sometimes, after all they all want to buy right?
With 17 registered bidders, it was never going to sell for a bargain!
My opening bid was strong, loud and instant and toward the top of our budget… and it worked!
I needed to send a message and take out the bargain hunters and emotional buyers and show to everyone else that I was there to buy!
There were no further bids at this point and the Auctioneer referred to his sellers.
Shortly after, the property was then on the market and that’s where it started to heat up!
But I had knocked out 90% of the competition and it was down to 2.
Tip 3 — Avoid a bidding war
Avoid bidding in increments of $1,000 if you can, even towards the end.
In this video, we were getting close to our budget and the other bidder was increasing their bids by $1,000.
So, I went up by $10,000 and importantly, showed no signs of weakness or indifference.
Bids must be instantaneous and strong and there should be no sign of slowing down.
Of course, our clients did not have an endless budget, but that is the impression you want to give, whether you are $20,000 from maxing out or just $2,000.
In the end, the $10,000 increments were too big to jump over, as opposed to their $1,000 increments and we got the result that we were after.
How to bid on a property – an overview
There are a couple of little things you can do that can make a big difference when you are bidding at Auction.
Firstly, dress to impress and dress for success — stand out!
Look like a professional and talk to the agents and Auctioneer, it will send a strong message that you are not just another number in the crowd.
Once the Auction gets underway, a strong opening bid can set other bidders back and knock out the competition.
You are now in control and have other potential buyers on the back foot.
This will also take some of the bargain hunters and emotional buyers out of play and drown the momentum.
Avoid a bidding war by increasing your increments at a higher rate.
Note: $1,000 bids are easily jumped, but $5,000 or $10,000 bids are harder and take more thought and hesitation.
