While auctions can be an incredibly stressful and intensive – even intimidating - way to buy property, they are also one of the fastest and simplest means of selling property. As a prospective buyer, it’s important you’re familiar with the highly unpredictable and often fast-paced process of an auction in order to be successful. Here are some tips.
To ensure you have a good understanding of how auctions run, their format and structure, it’s worthwhile attending a few auctions as a spectator before actually taking part in the bidding process.
You’ll have a chance to witness first-hand various bidding strategies without the pressure of trying to bid yourself, and it will give you some idea of the housing values in your area and the prices that properties are expected to reach in an auction situation.
Decide on Your Bidding Strategy
Once you’re ready to attend an auction and bid on a property, it’s vital you prepare a bidding strategy or your plan of action. Having attended several auctions already, you’ll have a fair idea of which tactics work, which ones you’re comfortable with and which ones to avoid.
Are you going to start off strong and lead the bidding? Or wait until the last moment and then bid, hoping to undercut the competition?
Avoid Going Over-budget
It’s easy to get caught up in the excitement of an auction and end up committing way over your budget. To avoid going over-budget, know your limitations and have a set figure in mind that is your absolute highest bid.
It’s important you remain realistic even if you are emotionally attached to the property already and not get carried away by bidding far more than you can afford.
Be Decisive and Clear
Bidding can feel a little intimidating at first and if you’re not that confident, you may want to employ a professional to bid on your behalf. If you are bidding for yourself, be sure you bid loudly, clearly and confidently, signalling your intent to the auctioneer and hopefully scaring off the competition!
At the same time, keep an eye on your rivals as you’ll be amazed how much you can learn simply from their body language. Equally, it’s important you remain outwardly calm and in control as you’ll no doubt be under scrutiny too.
Don’t Give Up
If at first you’re not successful, try again at the next auction, hopefully learning and improving your bidding technique each time you attend an auction. Just as importantly, know when to stop and avoid getting caught up in a bidding war and spending more than you can realistically afford.
If you are considering attending an auction in the near future to buy property, it’s important you’re pre-approved so you know how much you have to spend. Talk to one of our advisers about your finance so you’re prepared ahead of time.
While all care has been taken in the preparation of this publication, no warranty is given as to the accuracy of the information and no responsibility is taken by Mortgage Express Limited for any errors or omissions. This publication does not constitute personalised financial advice. It may not be relevant to individual circumstances. Nothing in this publication is, or should be taken as, an offer, invitation, or recommendation to buy, sell, or retain any investment in or make any deposit with any person. You should seek professional advice before taking any action in relation to the matters dealt within this publication.
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