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Auctions are highly energised exhibitions of nervous body language, calculating action, and strategic thinking — make the right moves, and your ideal property or investment may be yours. However, if you make an inadvertent blunder or a flashy gaffe that discloses your bidding vulnerability, it might be game over for your auction plan before the gavel falls. While there is no specific method to the madness of auction success, there are a few bidding do's and don'ts you should follow if you're thinking about buying.
The first and most important rule of bidding is to make sure you have your finances in order. This means you should know how much you're willing to spend on the property and have a mortgage pre-approval in place to act quickly if your bid is successful.
Auctions are as much about psychology as they are about finances and strategy. If you're feeling nervous or unsure about a particular property, it's important to keep your cool and not let your body language give you away. Remember, the other bidders are watching you just as closely as you're watching them.
If you're serious about buying a property at auction, it's essential that you get a building inspection done beforehand. This will help you avoid any nasty surprises down the line and give you a better idea of what kind of money you'll need to spend to fix any issues.
One of the most common mistakes made by first-time auction buyers is revealing how much they're willing to pay for a property. This is a sure-fire way to lose the auction, as the other bidders will know exactly how high to bid to beat you.
If you've never been to an auction before, it's a good idea to visit a few as observers before you start bidding. This will help you get a feel for the process and see how other people are bidding.
Some people think that being loud and noisy at an auction will make them look more confident and, therefore, more likely to win. In reality, all it will do is annoy the other bidders and put them off from doing business with you.
Arriving early at an auction is a good way to get a feel for the property and the other bidders. It also gives you time to talk to the real estate agent and ask any questions you might have about the process.
It's important to remember that the auctioneer is not your enemy. They are simply doing their job and trying to get the best price for the property. If you're rude or confrontational with them, it will only make them less likely to want to do business with you.
Auctions can be a great way to buy property, but they're also a minefield of potential pitfalls. By following the above do's and don'ts, you'll give yourself the best chance of success.
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Disclaimer: As with any insurance, cover will be subject to the terms, conditions and exclusions contained in the policy document. The information contained on this webpage is general only and should not be relied upon as advice. The opinions expressed in the Blog are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific insurance product. It is only intended to provide education about the financial and insurance industry. The views reflected in the commentary are subject to change at any time without notice.
