I've been a Buyers Agent since 2008, and in that time I have honed my skills in these high stress situations. Here are my top 5 auction strategies.
- Do your research and find out what the property is really worth. Agents are trained to get you to pay more than you want and work on your emotions to make that happen. I have seen the shock on people’s faces once the hammer falls and they realise how much more they have spent than they should have. Find a price and stick with it.
- More research! Whilst you may have fallen in love with the property itself, what is happening in the immediate area is vital to know. Things like WestConnex, for example, have seriously hampered people’s ability to sell their property for a reasonable price. Do a Google search for the address, look up DA approvals on council websites, check out the local paper to see if there is anything else happening which may affect not only the value of the property but also your ability to enjoy living in it. The best money I save my clients is on the properties they don’t buy.
- Check out your competition. Ask the agent who they are expecting at the auction and what their situations are. Be there when registration opens and watch them; it is good to know whether the ‘bank of mom and dad’ have shown up with that young couple you were already expecting for example.
- Ask the agent about the vendor’s situation. Depending on who the vendor is and what their plans are, they may be willing to sell prior. If it turns out to be a deceased estate for example, you can bet the beneficiaries will want to go to auction, so you don’t want to show your hand by putting in an offer prior.
- Don’t be afraid to bid. When you open the bidding you have more control over the other registered parties as they are responding to you, instead of the other way around. Especially knowing all of the above, it will give you the upper hand and you can respond quickly. Trust me, a good auction is a quick auction!