Myth busting: 4 auction strategies that don’t help your game
So you have a property auction coming up. You're going up against committed buyers, and that means you need every piece of advice you can get. However, there are many tips floating around that can actually hinder your prospects. Here are four that aren't necessarily the best moves when you bid.
1. Position yourself where no one can see you
When it comes to winning an auction, the name of the game is confidence. Unless you're bidding over the phone (and therefore having someone else represent you) you should never try to hide in the back of the auction.
Everything from your body language, attitude and the way you dress at the auction will assist in dictating your success. You'll want to be seen by everyone, and so you can see everyone to get a read on their body language. Prime positioning is front and centre, right in the middle of the auction room. However, you can also nominate a real estate agent to bid for you which is especially good if you haven't done your market research. Then it doesn't matter where you sit!
2. Wait a couple of bids after someone counter-bids you
Don't wait – bid again. Some want to see what their opponents want to do, but your hesitation could be the end of you. By retorting immediately after a counter-bid, you show that you are willing to keep going no matter what. Again, it's all a game of aggression, the more aggressive you are, the better. In order to make this possible (and to ensure you don't go over-budget) decide ahead of time what increments you're going to go up in so you can make speedy bids. While this tactic is aggressive, you should also be careful to drop out if you reach your limit!
3. Throw off others with random real estate questions
This is a strategy that some use in order to confuse their competition. But it really only puts you in a weak position. You want to come off as cool, confident and collected to your fellow bidders and this will only immediately put you in an inferior position. You've done your research before hand, if you need to ask any questions, make them intelligent and well-researched. That will fluster the competitors.
If you're trying to throw your competition off, however, there are a couple of actual tactics you can use to your advantage. One of the best includes bidding at odd increments and make the auctioneer count up your bid. When you call out the increment instead of the total amount what your bid will equal, you slow the temp of both the auctioneer and your opponents.
4. Never make the first bid
There's really no reason why you shouldn't be the first to throw your hat into the ring. In fact, starting the bidding (with a strong positioning as well) will actually only make you look like a strong competitor. Instead of never making the first bid, you should never be making the last bid.
Some people want to see where the bar is set, or even wait until the last minute to bid, but in the auction arena, you look stronger when you make the first move. Being aggressive is essential when it comes to getting the property you want, so get in there early or risk losing your voice in the crowd.
The property markets vary based on region, so if you want to ensure you're going into auction prepared specifically for Surfers Paradise, contact our specialised Ray White team today.