The Auction process can be an emotional time for both buyers and sellers, especially auction day itself. With the right advice and plenty of preparation you can and will become familiar and confident with the bidding process. When you buy at auction, you must pay a 10 per cent deposit – and there is no cooling off period. Most of your rivals will lack bidding experience too. Sticking to a clear strategy can give you the best chance of a good buy at a good price. Below we take a look at our Top 7 tips for bidding at Auction:
1. Finance Approval. Make sure you know your finance limit and have it pre-approved. Having a good relationship with your broker is critical, we often meet buyers who come to auctions and use the words ‘If only……’ when an opportunity passes them by. Have your solicitor check the sale contract and get a pest and building inspection done on the property.
2. Arrive at the auction early and register your interest to bid. The agent will ask you for your full name and details as well as some photographic identification.
3. Decide the maximum you are willing to bid before the auction starts.
4. Start the Auction. Often when the auctioneer asks for an opening bid everybody waits for each other. Being the opening bidder clearly signals your intention to purchase the property and puts any other pending bidders on notice that they will need to act. It can pay dividends to be bold.
5. Be clear and confident with your bids. This will show any other parties that you are genuine and determined to buy the property.
6. Bid firmly up to your limit then stop. You can try to slow down the bidding momentum by offering small amounts.
7. Should you be the eventual purchaser on the day (well done!) then be prepared to pay the 10% deposit and sign the contract. If you are bidding over the phone, the Auctioneer can sign the contracts on your behalf.