Learn how to bid at an auction (so you get your dream house)

Bidding at an auction isn’t everyone’s idea of fun. But, when you find the house of your dreams, it’s time to shake off those fears and get ready for a battle. Don’t stand at the back of the room. Come forward and fight for that house, front and centre.

Date:

25-May-2018

Category:

Buying

Author:

Amanda Smith

Learn how to bid at an auction (so you get your dream house)

Bidding at an auction isn’t everyone’s idea of fun. But, when you find the house of your dreams, it’s time to shake off those fears and get ready for a battle. Don’t stand at the back of the room. Come forward and fight for that house, front and centre.

Things will go fast and you need to be prepared. Getting the house could be the difference between five or 10 seconds. Make sure you’re fired up, with a coffee in hand if needed.

House bidding wars: buying at auction.

For some people, bidding at an auction comes naturally. For others, a strategy is required. Either way, let’s make sure you’re ready.

Tip #1: Be prepared

First, make sure your home loan is pre-approved. This way, you know exactly how much you’ve got to work with – no more, no less. Decide on the price you can’t go above, so you don’t get tempted when you’re bidding. Do as much research as possible, particularly regarding a property valuer’s valuation range.

Tip #2: Visit multiple auctions

The more you bid, the better you’ll get at it. You don’t want to hit the ground bidding for your dream house. Go to as many auctions as you can, so you get familiar with the process. A little bit of experience can go a long way.

Tip #3: Bid early, go slow

Introduce yourself from get-go with a low bid. Take control of the situation and show everyone you’re serious. Go slow and don’t be afraid to draw out the process to put pressure on the seller to accept your price. If they really want to sell, they’ll take your offer. Be strong and assertive. Call out the whole dollar value. For example, shout ‘$605,000’, not ‘$600,000.

Tip #4: Learn about comparable sales

Got your eye on a certain area? A selling agent can provide information on past sales within a street. For example, learn about recent renovations to know your limitations regarding strata. Information like this might guide your decision as to whether it’s a good buy or not.

Tip #5: Use a buyer’s agent

Rely on the knowledge and experience of a buyer’s agent to help you through the auction process. If you’re really not comfortable bidding, an agent can do this, advocating for you.

While your instincts help, it’s important to work with an agent’s advice and recommendations throughout the auction campaign. If you’re looking for insider’s knowledge on auction rules in South Australia and house bidding tips, talk to us.

We’ll get you that dream house.