How to win at auction
As an agent, auction day is game day. It’s fast, it’s fun and everything you’ve trained hard for is being put to the test. From a buyer’s perspective, auctions have an anxiety-inducing spontaneity that is a deterrent for most first timers. The current market reality is likely that you will have to buy at auction. Scheduled auctions across the Ray White Group, nationwide, are up almost 12 per cent from last year. In my experience, if you put in preparation via strategic thinking you will have a greater chance of success on sale day (which means you don’t have to go to another auction for a few years).
So with a strong late spring market and a bumper summer market predicted let’s hone those auction skills for you.
Tips for the lead up to auction day:
- Visit as many auctions as possible before you’re participating in one.
- Write a number down, your budget for the particular property, a price you perceive to be fair in this market.
- Also write a number down that you would be delighted to purchase the property at (bargain territory, unlikely in this market but do it anyway)
- And then write a number down that, if spent to buy this property, would not feel right for you (you’ve splurged, and you’ll likely have buyer’s remorse – though, again, in this market it could turn out to be a relative bargain)
- Get confident: bidding first is a great way to stamp your authority on the room (it also helps my auctioneer, but that’s not why I’m sharing this advice)
- Get support: if you are nervous, get someone else to make your first bid confidently for you. Have you thought about a buyer’s agent?They can help you through the stressful process of negotiation and bidding.
- Get clear: limit the number of decision makers. While above I advised that it’s great to have a support crew, you do need to drill down on the actual decision makers on sale day because auctions move quickly and you need to keep up.
Tips for ‘the big day’:
- Arrive early, get familiar with the environment and register if you plan on bidding
- Introduce yourself to the auctioneer on the day
- Keep those three critical numbers on hand: your “fair price”, your “bargain price” and your “splurge price” so you don’t get swept up in the atmosphere of the auction.
I hope you enjoy the read.