Buying at auction can be a nerve racking ordeal, but it doesn’t need to be! Often the reason people don’t like buying at auction is because they are scared of it, but really it’s just that they don’t understand the auction process for property and winning strategies that they can implement. Think about it – who is scared of buying at auction on TradeMe? No one. Most people understand how to operate a TradeMe auction and increase their chances of being successful.
Buying at auction is a little bit of psychological warfare between other buyers, and the auctioneer. The person that controls the auction will ultimately win the auction.
Here are some top strategies for buying at auction that you can implement straight away:
Get the prime position
Put yourself in a position where you can clearly be seen and can clearly see the other buyers. When buying at auction you need to be in a position that you can eye ball them and psyche them out if needed. Buying at auction is not a time to be a wall flower.
When the auctioneer calls for an opening big give them a strong starting big. Make a statement to the other buyers that you are here for business.
When you bid use a strong, loud and calm voice and/or signals. Be assertive in your nature with strong body language. Show strength at all times, never shake your head, fidget, bite your nails or anything that looks like you are nervous.
Make Your Bids Count
Intimidate the other buyers by: bidding quickly, don’t let your opposition think for a second that they can own this house; double bidding (if the reserve isn’t met), this again shows that you are very serious; bid higher than what the auctioneer is calling for, if they are calling for $5,000 bid $10,000 or $7,000; make ‘king hit bids’ if bidding is slowing at $515,000 and your max is $550,000, make a bid of $532,000
The Third Call
Some people like to wait until the 3rd call and then come in with a counter bid. This is madness, if you do this the other buyer will always come up. You are giving them the moment where they are thinking, feeling and living the dream that they own that property. Of course they are going to go up by another $1,000 or more. Who wouldn’t?
Be a Little Crazy
When you bid, be a little erratic with your bidding. In one bid go up in $5,000, then $1,000, then $10,000.
Open With a Weird Number
When the Auctioneer calls for an opening bid give them an odd ball number to throw them off their game and disrupt the tempo. A good auctioneer will be able to handle this easily, but you never know it might just throw them off their game.
When Buying at Auction – Be In Control!
Ultimately all of these strategies are around you being in control and showing dominance in the auction room.
Remember that while you are ultimately bidding to secure the property, you are also bidding to have first negotiation rights if the property does not meet reserve. This is a powerful position to be in when buying at auction.
The key with buying at auction strategies is that you want the other buyers to think that you are going to get the property no matter what.
If you are looking for properties at the moment and would like some educated help for buying at auction from a top performing agent I’d love to hear from you. You can reach me on 09 481 0648.