Your Guide to Buying a Property at Auction
Buying a property at auction can be exhilarating, but auctioneers are adept at using psychological tactics to push bidders beyond their limits. They create a sense of urgency, with rapid-fire bids and countdowns that pressure buyers into hasty decisions. With the right strategies, however, you can confidently navigate auction day—whether you secure the property or walk away when the bidding gets out of control.
Pre-Auction Tips:
Market Research: Equip yourself with detailed knowledge of the market by reviewing recent sales and comparable properties in the area. This gives you a realistic idea of the property's value.
Due Diligence: Conduct building and pest inspections at least one week before the auction to identify any potential issues. If you're planning major renovations, consult a town planner for a site review to avoid surprises later.
Set Your Budget: Develop a three-tier pricing strategy:
Bargain Price: Your ideal purchase price.
Market Value: What the property is reasonably worth.
Dream Home Premium: The maximum you’re willing to pay, with an added 1% "I’d kick myself" allowance.
Auction Day Strategies:
Arrive Early: Show up early to complete registration, review the contract, and introduce yourself to the auctioneer. Do some homework on the auctioneer’s style by checking out their social media accounts.
Use Odd Increments: Offer irregular increments (e.g., $2,500 instead of $5,000) to disrupt the flow and keep competitors off balance.
Pause Before Raising: Stay calm and composed. Taking a brief pause before countering a bid signals confidence and helps you avoid impulsive bidding.
Have Support: Bring a trusted advisor or friend for emotional support and to keep you grounded during the intense moments.
Monitor the Auctioneer: Auctioneers often try to increase the tempo. Stick to your plan and don’t let them rush your decisions.
Be Willing to Walk Away: If the bidding surpasses your set budget, be prepared to step away. Staying disciplined ensures you don’t overpay for the property.
At Tina James, we provide expert auction support as a standalone service. If you need professional guidance, we’re here to help you make confident decisions. Contact us to learn more.