Auctions are daunting and it’s hard not to get caught up in the excitement of outbidding the competition. But with a good auction strategy, you’re well placed to win the house of your dreams when the hammer comes down – without overpaying.Auction may not be your first choice when it comes to buying a home, but it has many benefits as a buyer.
Every auction is different, but there are a few strategies that can help you come in strong and hopefully stand out. In this article,we will share expert tips for winning an auction.
1. Wait for your first bid
“It’s usually better to let the bidding begin and then come up with a strong offer at a later stage,” Tabay advises. This gives you a chance to assess the competition, figure out when the property will come on the market (once the reserve price is reached), and weed out those who are just looking for a bargain.
2.Make your first offer a strong number that reflects market value
In today’s transparent world, where property values and valuations can be found on software such as banking apps, there is little point starting too low.
Everyone at the auction will know exactly what the property is worth and be prepared to pay that price, just like you. It is wise to start near where you want to end up so that you knock out a lot of low bidders immediately.
3. Bid with rounded figures
It’s best not to bid an odd number, like $649,500, because someone will always offer $500 more. Instead, bid with an even number – if your opponent tries to slow down the bid with small increments, then pass them with an extra $500 or so so that you can instantly pull yourself back into first place.
4. Counteroffer quickly and confidently
Bidding quickly after receiving another offer lets people know you are serious and will also help you determine who your competition is.
5. Talk to a realtor
It’s tempting to hide in a corner and not be seen, but it’s important that real estate agents and auctioneers see you and know that you’re a serious bidder.
“The agent is on hand to guide you through the process, so you need to keep them up to date on your situation without giving everything away,” says Tabai. “I’ve seen a lot of cases where buyers, frustrated by missing out, say ‘if I knew it was going to go for this price, I would have paid more’ and blame the agent, but when the agent asks for information, they are vague.”
6. Set a budget and stick to it
One of the biggest mistakes buyers make at auctions is not setting the maximum price they can afford… Keep at it. At the end of the day, as much as you may fall in love with a property, and as much as you may think you’re winning, you shouldn’t go over your predetermined budget.
These tips will come in handy when you are at an EnjoyBid auction. Let the auction begin!
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