8 Tips For Buying Property At An Auction in Sydney
Buying property at an auction gives you the opportunity to see other potential buyers and find out what price they’re prepared to pay for the same property.
However intimidating, auctions are a transparent selling method. If you know how to play your cards right, you can get the upper hand.
Let buying property at an auction work to your advantage.
1. Do your research
It pays to do your research and get to know the market. Find out the real value of the property and armed with that information, put out your best offer.
By knowing the true value of a property, you can set a bidding limit that’s easier to stick to. And if it is beyond your maximum limit, don’t be afraid to walk away from it.
Don’t commit yourself to something that which you cannot afford.
2. Take a position in the middle of the room
It’s much better to take a position in the middle of the room where everyone can see you. Don’t hide away in the back as it weakens your position. It helps to have a confident presence in the auction room – after all, you are bidding for your dream property.
3. Be prepared to lose
It’s far better to walk away and live to fight another day than to go beyond the limits you’ve set for yourself. Financial limits are real and going beyond them has serious repercussions. You are going to have to control your emotions and have the objectivity to walk away.
4. Don’t be forced into a “dutch auction”
A “dutch auction” is a less transparent way of bidding for a property which defeats the purpose of buying property at an auction. It’s essentially two or more potential purchasers making “blind bids” before a property goes to auction.
Not knowing the bidding amount of the other parties, the selling agent can just say that they have put in a higher amount, just so you increase your offer.
This is a bad situation to find yourself in. The price of the property will only rise beyond reason as your emotions run high.
5. Wait until the last minute to place a bid
Sometimes, it does pay to place your bids powerfully and quickly. This strategy can work particularly well if done confidently and you are reading the room well. But it is a strategy that is more for the experienced bidder, as it is a recipe for getting into an emotional bidding war. Even if there is only one other keen bidder, your emotions may take over.
So as a general rule, if you are going it alone, I highly recommend you slow down your bidding and wait.
6. Don’t divulge your strategy to anyone
Any information you give out can be detrimental to your negotiation power.
This is an auction house where people are bidding for the same property.
It’s absolutely not the time and place to reveal how much you love the home or are willing to pay for it.
7. Have someone by your side on auction day
And I don’t mean your partner or a friend. On auction day, you need someone who lives and breathes buying properties.
Having a buyer’s agent by your side giving you advice and recommendations throughout the auction campaign gives you the confidence you need to secure your dream property.
A buyer’s agent is a professional who knows the market well and who can think objectively on your behalf.
8. Get a professional buyer’s agent to bid and negotiate for you
If you’re the registered bidder for a property, you’re the only one who can bid. But, you can actually nominate a buyer’s agent to bid on your behalf.
You know how sellers have real estate agents representing them? Don’t let them have all the advantage.
If you are thinking of buying your new home or an investment property in Sydney, why not level the playing field and get the experienced buyer’s agent to represent you on auction day and during negotiations?
All forms of negotiating become easier when you remove personal emotions. This puts you in a much stronger position and is one of the immediate benefits of engaging a buyers agent.
The other major benefits of course are the significant professional experience and local market expert knowledge of the right buyers agent.
Buying Property At an Auction in Sydney Is Easy With Tracey Chandler As Your Buyer’s Agent
I hold a full real estate licence as a buyers’ agent in Sydney. I have had 30 years of experience in the property market, which I built through renting, investing, selling, renovating and buying all types of properties.
If you need help in buying property at an auction in Sydney, call me now at +61 416 100 839 to schedule a preliminary meeting.
That number connects you directly to me. No answering machines and no assistants!