If you are planning to attend a home auction and offer any serious bid on the property, you likely know that this process requires a solid plan if you aim to come out as the winner — and do so at a price that works for your wallet.
A big part of that plan is what you will do when the actual bidding starts. You may have all your ducks in a row financially, but if the auction takes an unexpected turn, will you know how to react? The following tips should help:
Even as you arrive, you should size up the other people attending the auction, according to Realestate.com.au. Some may be vaguely interested in the home, others may look like they're planning to be aggressive. As the auction goes on, continually take note of how everyone is behaving and try to "read the room" to see when you should enter a bid of your own.
Keep in mind what they say about negotiations: You shouldn't start with your high offer. Start low, see where the auction goes, and think strategically about how and when you will bid. Being able to sit back and wait until things have slowed down a bit so you can make that one last confident bid will potentially allow you to separate yourself from the other bidders and win the home you're after.
Part of what makes an auction beneficial for sellers is that bidders can get caught up in the moment and keep up the competition until they just can't justify going any higher. Finder noted that if you take this approach, you may quickly realise you have bid more than you would have wanted, or potentially even more than the home may be worth. As such, you should always have your absolute ceiling in mind, and avoid talking yourself into exceeding it.
When you're thinking of buying a home through an auction or a traditional private sale, you would be wise to enlist the help of an experienced real estate agent who can guide you through the entire process. At Ray White Surfers Paradise, we have helped countless people buy and sell homes, so we know the ins and outs of every conceivable type of residential real estate transaction. Get in touch with us today to learn more about what we can do for you.