Hi Kris
OK, I'll give it a whirl as I'm having a slow Monday afternoon.....
Are you sure you're in the ballpark on price?
So many buyers get disappointed at auction because they haven't done their due diligence and fall for the supposed price guide that the agent gives. Let me tell you- it can be wildly inaccurate, and I've seen many many upset buyers who thought they had a chance when there was never any way.
Don't just ask the agent- conduct your own research into similar properties, ask the agent what sold properties they're basing their price guide on (you will start to soon see if they're being realistic or not) how many contracts they've issued, check out their other auction results and see how those price guides compared.
*Disclaimer to this is the emotional buyer who is going to outbid you no matter what. I've also come across a few of these and the only winner at these auctions are the vendors, who can't believe their luck!! Let's hope you have none of these at the auction.
Contract
Have you had this checked out by your conveyancer/solicitor? Most important, if you haven't already done so, as there could be some surprises in there or nasties that you're not aware of. Anything that you'd like amended, do it before the auction and ensure you sign the correct copy, if successful.
Auction
Get there early, register and then count the no. of bidders who register. This doesn't mean they're the only potential buyers as you can also pre-register with the agent the day before, but at least it gives you some idea of your competition and you can then strategically place yourself so you can eyeball them all on the day
Don't stand at the back of the crowd- look confident, place yourself near the front at the side and close to the auctioneer, where you can clearly see all the action.
If with a partner, don't look at each other at all, and especially NOT when you're near your limit. A telltale sign that people are nearing their limit or considering going just that little bit more- they look nervously at each other, whisper etc.
Once the auction opens, try not to enter the bidding until it's obvious others have dropped out. Fresh competition often unnerves existing bidders, especially if you're confident.
As others have said, if agents approach, tell them politely to move away. You're perfectly fine, thankyou very much.
Don't fall for the bidding above a Vendor Bid (one only allowed in NSW auctions) like I've seen a few times. Only ever bid above genuine bids from real buyers on the day.
Remain calm. Don't go over your agreed limit (make it an odd no. so that you don't have the same amount as another bidder!) and remember that, unless the particular property is unique, special to you for a specific reason, or you're prepared to pay over market knowingly for it, there will be another property for you
Money spent wisely on DD, building/pest inspections and contract reviews etc is not lost when you fail to "win" at auction. Consider them a form of insurance and move onto the next property up for grabs.
When I bid at auction, every one is different and so I don't really know how it's going to proceed, until I'm in the thick of it. Knockout bids, slowing down to little increments etc. It's really a matter of waiting and gauging the action on the day. It's all exciting stuff
PS: If the property gets passed in to you as highest bidder, but not meeting reserve, at the table, ask the agent why you should pay more? Remind them of the price guide (if applicable) bring out your list of comparable sales (if favourable) and remember that, if the property was truly worth what they wanted, it would have sold at auction several minutes before
At the same time, however, if you really want the property and it's been passed in below your top price, don't let ego and pride get in the way of your dream home. It's your decision after all.
Best of luck!!
