How to win at auction
September 10, 2014 / Written by Rich Harvey
Sydney boasts one of the hottest auction markets around, with consistently great clearance rates and a high volume of property turnover. Information from RP Data revealed 35.3 per cent of properties that changed hands in the New South Wales capital were sold at auction between February and March of 2014. While this can sound unnerving, it really makes for an energetic market with many outstanding options for your next investment property in Sydney. But as with any new venture, heading into auction in the Harbour City can raise a lot of questions for you.
When do I start bidding?
Waiting until the home reaches reserve price is often a good idea, but if the auctioneer starts the bidding extremely low they may be trying to stir up a frenzy in bidders looking for a bargain and let them get carried away. If you feel confident, you can nip this early bidding war in the bud with a well-placed bid that is much higher than the low starting point. Make sure to leave yourself room to continue bidding if there is a competitor in the auction.
How high should I bid?
This is completely up to you, and dependent on your budget and any home loan approvals in place. What you must do is set a limit for yourself before you head to auction, and stick to it when you are in the midst of the bidding. A buyers agent can help here, by giving you inside information on home values and advising whether you are paying the right amount for your property.
Does it matter where I sit?
This can make a huge difference to your auction result. Getting in near the centre of the action means you can speak clearly and be easily heard by the auctioneer. State your bids loudly and in full for an excellent, bold impact on the auction. It doesn't just give you a boost over other bidders, it will give you a jump in confidence, calming those auction nerves.
I don't know if I can handle the pressure - can someone bid for me?
Absolutely. We understand that auctions can be very high-tension environments, and that is another way in which a buyers agent can be there for you. As seasoned professionals in the housing market, these agents have extensive experience in auctions and can engage in the bidding on your behalf. You set the limits and guidelines for what you want, and they will take on the auction for you - you can grab some popcorn and watch the action unfold from the back.
For any more questions on the auction process, feel free to contact an agent today.