How to win at auction this Super Saturday: Patrick Bright

How to win at auction this Super Saturday: Patrick Bright
How to win at auction this Super Saturday: Patrick Bright

For those unaccustomed to bidding at auction, buyer's agent Patrick Bright has some advice ahead of this weekend's Sydney Super Saturday.

Firstly, know your budget – and keep it. You also need to prepare for what may happen if you do secure your property.

“Prior to auction, buyers need to ensure the contract has been reviewed by a solicitor, that a pest and building inspection or strata search has been completed and finance pre-approval is in place because if the hammer falls on your bid, then it’s an unconditional sale to you,” said Bright.

“Any variations to the contract of sale must be formally agreed between the vendor’s and buyer’s solicitors before auction day.

Here are seven auction tips from Patrick Bright:

  1. SET YOUR LIMIT ON AN ODD NUMBER

    When buyers set their limit, they usually choose a round number eg. $600,000, $850,000 or $1.6 million. So if two people happen to have the same limit, which is more likely to happen on a round number, then the first one to get there can buy the property for that price. That’s why it makes sense to set your limit on an odd number.

  2. STICK TO YOUR LIMIT

    "The most important auction tactic (actually it’s more like a rule) is: set your limit before the auction and NEVER go over it. This is the only tactic that applies in all situations. If you blow your limit, your dream home can become your nightmare liability as you struggle to make mortgage repayments that are more than you’ve budgeted for."

  3. GET THERE EARLY

    "You should aim to arrive at least 30 minutes before the start of the auction so that you can do a final walk through, register to bid and calm your nerves as best as one can."

  4. CONTROL YOUR EMOTIONS

    "You need to control your emotions at auction because emotions will cost you money. The number one auction mistake that you will pay for ‘with interest’ is getting carried away and paying too much for the property. That’s a mistake you will end up regretting for a long, long time."

  5. NEVER BID AGAINST YOURSELF

    "If you’re the highest bidder and everyone else has stopped bidding, never increase your bid, no matter how much pressure the auctioneer or selling agent puts you under. Some people don’t even need to be asked to bid against themselves. Surprisingly this happens all too often when the highest bidder loses track of their bids. They’re so nervous, caught up in the excitement of the bidding process or confused that they raise their own bid. It sounds ridiculous however it must be easy to do as I see it happen quite a lot."

  6. IS IT ON THE MARKET?

    "The auctioneer is under no obligation to tell you whether the property is on the market or not, however you have the right to ask. Every property has a reserve and the selling agent and auctioneer know what it is. I like to wait till the property has reached the reserve before I bid as there is not a lot of point bidding until you know you’re playing for keeps. Until a property is called on the market the probability that you’re bidding against a dummy bidder is quite high."

  7. GET SOMEONE TO BID ON YOUR BEHALF

    "Bidding at auctions is not for everyone. If you really want the best shot at owning the property then you need someone bidding for you who is experienced, confident and knows the tricks and games selling agents and auctioneers play.

    "If you’re at all nervous it’s a good idea to get a trusted friend or family member to bid at auction for you, especially if you’re worried about going over your limit. Tell them your maximum bid and instruct them not to go above it under any circumstance. You will always be better off hiring an ex auctioneer or experienced buyer’s agent to bid for you though."

    Source: Patrick Bright’s The Insider’s Guide to Saving Thousands at Auction

Patrick Bright is a Sydney-based buyer’s agent who has purchased more than $500 million worth of real estate for clients and is the best-selling author of four Real Estate books in his ‘Insider’s Guide’ series. The 3rd edition of his best-selling book “The Insider’s Guide to Buying Real Estate” reveals the latest trends on how to search for and negotiate the best possible deal for purchasing property. For more information on Patrick Bright or EPS Property Search visit www.epspropertysearch.com.au.

 

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Auction

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