Warwick Brookes – Buyers Agent
Before you bid in an auction there’s some due diligence that needs to be done. First, you have to go and get a good understanding of the value of a property prior to the auction, so you’ll be able to set your limit. Don’t get caught up in the emotion of competition. Know when you will stop. Many people pay hundreds of thousands of dollars more than the market value of a property based on emotion and a lack of research.
Then have the contracts checked by a solicitor. Make sure you are happy with the terms and conditions of the sale. Prior to doing any bidding, you need to confirm with the selling agents any alterations you want to make to the deposit and settlement terms. Just before the auction starts, you should stand out the front near the auctioneer facing the crowd which allows you to look at who is making bids against you. If you have friends and family there, don’t stand with them. You don’t want the competition to see your emotions when you’re running low on budget.
Be confident and assertive and be the first person to bid. Say the amount you’re bidding when you bid to avoid any confusion. Match bids with your competition quickly. Don’t hesitate — it may make them think you’re running out of money. Once the property is on the market, try getting the bidding increments as low as possible so when you make the final bid you are not paying too much more than where the last person ran out of money. If the property hasn’t reached reserve, make sure you are the last person holding the bid. Even if the auctioneer puts in a vendor bid, give them $1,000 more to be the person holding the bid. This will put you in an exclusive position to negotiate after the auction.
When signing contracts, make sure all full names are spelt correctly and always have and/or nominees at the end of the name just in case you change something prior to settlement. Check the agents’ calculations for figures to make sure they are correct and that the settlement falls on a weekday and not a weekend. Then make sure you get a receipt for the deposit you’ve paid.
To find out how we can assist you when you’re ready for your next auction, contact me today at 0412 340 611.
