I’m going to give you five strategies to implement on auction day. So the first strategy is to employ a professional to bid for you at auction. As an auction, we find it challenging to convince a professional buyer to bid in the increments that we’d like them to bid in. They also remove the emotion that you may otherwise show the auctioneer on auction day.
The second strategy is you can determine the increments that you bid in. The auctioneer will try and convince you to bid in a $10,000 increment 25 or $50,000 increment. The auctioneer will also try and challenge you to raise that increment over the course of the auction, but you’re in control of your bids. Now it’s up to the auctioneer, whether they accept your bid or not, but make sure you put your best foot forward.
The third strategy and maybe one of the most important is to watch your competition. As an auctioneer, we read body language. And as a buyer, you should be watching the buyers that you’re competing against. You can learn a lot from the way that they move the looks at that give each other where they place their hands, and the way that they are bidding. The fourth strategy is not to be fooled by the trial close.
Now as an auctioneer, we use different strategies like calling the property first, second, third, we also use our hammer to threaten that we’re going to sell it ultimately every property has a reserve price that the auctioneer is working towards. And we use those trial closes to encourage you to bid and create urgency to build momentum during the auction. And as an auction he it’s this momentum that we thrive on to try and make sure that we continue that spirited bidding and ultimately getting a great prices for our owner. The fifth strategy today is to scope out how many buyers are interested in bidding. So ask the agent, how many people are going to be active on auction die.
If there’s lots of interest, start the bidding with a confident bid well above the price guide that the agent has been quoting. And the reason to do these is that you’re going to knock out a significant portion of your competition. If the bidding starts low and fast, this is what we want to happen. The auctioneer is able to build a lot of momentum and a lot of energy around getting a higher price on auction day.
Equally, if there are fewer buyers interested in buying that property, there is no need to start the bidding with a really confident strong bid. Sit back maybe see if somebody else is going to be but the important thing is in any auction, be active. The owner and the agent will always look favorably upon those buyers who bid and compete for a property.
Make sure you have your finance ready to go and a pre approval in place. Make sure you do your research on the property. Find out what other homes have been selling for in the surrounding area. So you can determine the value that you feel that property is worth. And if the right property comes along, stretch yourself that little bit further because good quality real estate hard to find.