How to bid successfully at an auction

The property you love is going to auction! You’ve inspected it, done your due diligence, and have your finances in order. Auction day sees you energised and confident, and then you arrive to find a long line of bidders. What do you do now?

At an auction, the property will be sold to the buyer who offers the last bid above the seller’s reserve price. To provide you with the best opportunity to be successful with your bidding on auction day, it is important to have a bidding strategy and be prepared.

Learn more in the video, where Joanne Danckwardt of One Agency JD Property Agents provides tips on how to be the successful bidder on auction day and provides some strategies on how you can win that property at the auction.

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Set a budget and stick to it

Set a maximum price that you can afford to pay and stick to it. As much as you may fall in love with the property, and as close as you might think you are to winning the bidding, you never go beyond your predetermined budget. Aim slightly above round numbers. If you decide your budget is $750,000, then you may be able to go to $753,000, but it is a decision you need to make before you start to bid.

Position

Arrive early to choose the best vantage point, and determine how many bidders are registered. Ensure you in are in a good line of sight of the auctioneer. It is important that you be able to see them, and for them to be able to see you and know you are there. Having an ideal visual presence will allow you to also you to be able to see what is going on around you, so be in a position where you can see the crowd but also the auctioneer very clearly. When the auction starts, it is best to have a great position and make yourself heard. Ensure the auctioneer knows you’re a real contender in the sale and you’re there to win!

Talk with the agent, and don’t be afraid to introduce yourself to the auctioneer prior to bidding. It is important that they know you are a serious bidder. The agent will be able to guide you through the process.

Be the first bidder

Pick up your paddle and show it to the auctioneer every time you bid, and be the first one to bid. Whilst this can be difficult, the auctioneer with love you for it, and will always come back to you to give you every opportunity with the home.

Making yourself known with a strong opening bid can also shake up your competition and wipe some of them out early.

Bid quickly

Once someone else has offered above you, come back quickly and confidently. This will let others know that you are serious, and puts pressure on them. It doesn’t need to be a huge jump in price each time, but making a quick decision leaves other buyers feeling under siege. Momentum plays a big role in determining the outcome of an auction.

Bid in increments that you want to bid in. The auctioneer may ask for bids of say $10,000, but you can offer them $5,000 or $13,000. Offering odd numbers can force the auctioneer and other bidders to slow down and rethink due to unexpected numbers.

Be the highest bidder

You must be the highest bidder when the auctioneer’s hammer comes down. The auctioneer will usually call the sale three times before the hammer comes down to indicate the sale if final. Calling the sale for the third time could mean that the property is above the seller’s reserve, so you need to be at that highest level in order for the property to be sold to you. If the property gets passed in, as the highest bidder, you will be the first person that the agent will negotiate with to try and sell after the auction.

If you are looking for a property to buy, request to be added to our open home alert 

YES, ADD ME TO YOUR OPEN HOME ALERT

I hope that helps with your buying journey. If you want to know a little more or gain some advice on how you can be the winner at your next buying auction, please get in contact with One Agency JD Property Agents in Fairy Meadow. We would love to talk to you and can be contacted on 0426 264 771. We are here to help.