So you’ve found your dream home and it’s going to auction this weekend? Auctions can be very exciting and whilst you may be relying on your loan approval and good old fashioned luck, there are a few strategies that you can employ to help you win at auction.
To win at auction: Bid confidently
According to Harcourts New Zealand National Auction Manager, Chris Kennedy, one of the best ways to help you see success on auction day, is to bid quickly and confidently.
“Definitely bid confidently, as it shows other prospective buyers that you’re a serious bidder, and bid without hesitation”, says Chris. “As they say, hesitation will only cost you more”.
It’s about being bold, being loud and being seen.
Remember, you can ask questions of the auctioneer, both before the auction starts, and even during the bidding process. The auctioneer has worked closely with the seller and agent leading up to the auction, so they are well informed and equipped to answer your questions.
Along with bidding confidently, it doesn’t hurt to dress smartly on the day either, as this is all about creating a certain perception. Dressing well at auction will give the impression to other buyers that you are a serious buyer with the means to purchase the property.
“Alternatively, dressing casually or in a non-descript way may give you the edge, if you’re not prepared to show the colour of your money, so to speak”, says Chris. “It really depends on your strategy on the day”.
Think about attendance
Some may say that bringing along the family to an auction could prove to be distracting, or give the impression that you have other pressing financial commitments, but this is not necessarily true says Chris.
Chris says that having the family there can sometimes prove to be an advantage. One auction he attended saw a young couple bidding next to a young family.
“At one stage, the couple actually stopped bidding and said to the young family that they could see they needed to home more”, says Chris.
Sort your finances
Ensuring your finances are in order is paramount at auction. You need to have a cash deposit, usually of about 10% ready to go on the day if you are the successful bidder. It’s also important to seek pre-approval on your finances so you know exactly how much you can confidently bid.
Do your due diligence
Make sure you have done your due diligence. This means organising the relevant building and pest inspections before auction day, doing the relevant title search or checking the LIM in New Zealand.
This is important for your peace of mind, so that you can confidently bid come auction day. Because sales at auctions are final, and contracts are often unconditional, you will not have the opportunity to organise building and pest inspections after the auction.
Know your limits
Understand how much you are willing to bid, but remember, sometimes the difference of $1000 could mean you miss out on the property.
An auction can be both an exciting and daunting experience, so prepare in advance, know your limits and bid confidently on the day. Best of luck!