If you are aiming to attend a home auction in the near future, you face a situation that's unique in the homebuying market. You could get a home at a price that's absolutely perfect for you, but you can also find yourself wading into deep waters and potentially bidding more than would be reasonable for you. The question is, how can you win at auction without busting your budget?
At Ray White Surfers Paradise, we've seen it all in this industry, and we have some tips that should help you make the best possible financial decisions when at an auction:
Don't come out of the gate strong
One of the first tricks any real estate professional will tell you about an auction is that you don't want to be the first bidder, according to Home Beautiful. People will always try to outbid you, even if you go relatively high, and if you go low, it will just encourage more interest from other bidders. That, in turn, will drive up the price.
Make sure your first bid is strong and fair
Once you have laid back in the cut for a few rounds of bidding, you should be prepared to step in with an offer that roughly reflects the market value of the house. While you may still be hunting for a bargain, your thoughts should be of saving a few thousand dollars rather than trying to get a bargain-basement deal. If your bid is strong, others might back off.
Keep an eye on other bidders
Speaking of other bidders, the unique thing about an auction is that their behaviour can be extremely telling. RealEstate.com.au noted that this is particularly true when it comes to couples. Typically, one will be the bidder and the other will be the advisor. It's easy to figure out who's who, and if you see them conferring with each other more often, it's likely a sign that they're prepping to stop bidding.
Know when to say when
Auctions can get emotional and you might find yourself bidding just to remain competitive, but the thing you should always keep top of mind is that you can't afford to go over your own personal budget. If you get locked into a final bid that's higher than you want, you won't be setting yourself up for financial success.
When you're looking to buy a home, check in with the real estate experts at Ray White Surfers Paradise first. We have years of experience in the industry and have seen it all, so get in touch with us today to learn more about how we can help you.