Auction tips for buyers
22 November 2017
Erin Delahunty via realestate.com.au
Property auctions can be intimidating, especially for first-time buyers, so knowing what to do and what not to do is essential.
David Holmes, LJ Hooker’s national auction manager, shares his advice.
Four top tips for a successful auction day…
Holmes says pre-auction preparation is absolutely vital to success. Would-be buyers should talk to the selling agent, research comparable properties, decide on a strict price limit and commit to sticking to it, he says.
“Once you’ve inspected the property, know you have a connection and want it, ensure your finances are all sorted and your deposit is ready to go. If your bid is successful, you will be required to pay the deposit on the day,” Holmes says.
“Get all the necessary inspections done before auction day too, because when that hammer comes down, it’s unconditional, with no cooling off period,” he adds.
Don’t let nerves take over
The biggest mistake many potential buyers make is turning up to an auction and not bidding because of nerves, Holmes says.
“If you’ve done your homework and know the market value of a property, put your hand up and bid, strongly and confidently. While it can be daunting, an auction is a genuinely transparent process, a negotiation that happens out in the open, with people who want to buy a property,” he says.
“People can have real peace of mind that they’re not paying, say $50,000 over the market value, because it’s all done in public.”
Think about your body language
At an auction, it’s also important to appear confident, Holmes says.
“You need to look confident and essentially, like you have very deep pockets, like you can bid all day long, to deter your competition,” he says.
“Don’t be on the phone or looking like you’re out of your depth or stressing out, as other bidders will be able to sense that. Appear very, very confident, put your hand straight up with a decent bid and you’re half-way there,” Holmes says.
Don’t be ‘invisible’
“As an auctioneer, I always go and meet the potential buyers before an auction, to ensure they’re aware of the relevant legislation and terms and conditions. There’s no point trying to hide up the back and not talk to the auctioneer and agent staff,” Holmes says.
“If you’re keen, polite and courteous from the get-go, the auctioneer will be more likely to engage positively with you too.”