Six tips for keeping a cool head at auction

Six tips for keeping a cool head at auction
Jennifer DukeDecember 7, 2020

First home buyers heading to auction must keep a cool head, particularly on a weekend like the upcoming one in Melbourne.

Excitement is the air ahead of a record number of scheduled weekend auctions.

There are close to 1,800 auctions lined up for the weekend across Victoria, according to the Real Estate Institute of Victoria (REIV), the most auctions ever held on a single weekend in the state.

“I’m tipping this to easily outstretch any of the big auction weekends in the past, including the current record of 1,517 auctions set on December 14 and 15 last year – closely followed by 1,463 auctions on the pre-Cup weekend last year,” said the CEO of the REIV, Enzo Raimondo.

"The city's auction market is in excellent form and we believe this record-breaking weekend will see the public turn out in large numbers.”

The top auction suburbs are:

Source: REIV

With all the attendant excitement, how can you ensure you keep your calm this weekend? Here are our tips.

  1. Head in with your documents pre-prepared

    By now, you should have looked at your contract of sale, sought out legal advice, obtained a building and pest inspection (and any of your other checks and balances), undertaken any other required due diligence and prepared a cheque or other way to pay your deposit. There’s little time to do this on the day, so having all these things pre-prepared will go a long way to stop the last minute “morning before” rush.

  2. Engage an expert if you need the assistance

    If you are concerned about bidding, then it may be worth contacting a buyer’s agent to assist you in the bidding process. Alternatively, you may decide that bringing a “devil’s advocate” in the form of a trusted mentor, friend or acquaintance can assist you at auction. If you become more bullish under pressure, this may assist you in maintaining your restraint with bids.

  3. Gauge the crowd ahead of time

    Head to the auction early and gauge the crowd and the ‘vibe’ ahead of the start. If you’re heading in late you will be unable to weigh up your competition and you may encounter extra stress as a result. This will help you think strategy and determine whether or not you may be contending against another buyer.

  4. Position yourself thoughtfully

    When at the auction, don’t forget to position yourself carefully in preparation to bid. Property Observer editor at large Jonathan Chancellor recommends that you never sit in the front row, or with your back to the crowd.

    “Take a corner position so you can survey all your competition,” Chancellor advises.

  5. Know your highest price and do not waver

    Before bidding, you should have determined the highest price you’re willing – and can afford – to pay. If you’ve made a thoughtful decision ahead of time, then this should enable you to set your limit on the day. If you do not make a researched judgment on the price then you may face overpaying in the heat of the moment.

    While it is debatable as to whether you should allow yourself to push a “few thousand” over your set price, it’s advisable that you determine to be comfortable to allow the property to go if it sails past upper limit.

  6. Step back

    Be confident and polite when bidding, but if you find yourself getting caught up or confused then it’s time to quickly re-assess. Step back, remind yourself of the value of the property and ensure you don’t get swept up in the emotion of the day.

    Similarly, if you find yourself bidding furiously against another buyer it is worth reminding yourself that you are both causing the other to pay more. Be alert and know when to show restraint.

Jennifer Duke

Jennifer Duke was a property writer at Property Observer

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