Many newbie sellers cringe at the thought of auction day. The blood pressure rises, and nerves becomes apparent, as the day comes nearer.
Be prepared! No advice can be better than this simple fact. The best procedure to reduce your stress levels is, to learn about the auction process; in details and to every possible length. To help you get in the know, we have charted a classic auction, and also what you can expect.
Before auction, buyers would want to ensure the contract has been studied by a solicitor, making sure that a pest and building inspection has been done and finance pre-approval. Differences to the contract of sale must be officially considered between the vendor’s and buyer’s solicitors before auction day.
Set your limit appropriately
Buyers normally select a round number ($600,000, $850,000 $1 million etc.) So if two people happen to have the same limit -which is possible on a round number- then the first one who acquires, hold the right to buy the property for that price. That’s the point behind setting your limit on an odd number.
Be persistent with your limit
The topmost auction tactic in your book should be: sticking to your limit and must not go over it. If you go beyond your limit, your palace can become your prison; when you strive hard but eventually fail to pay the mortgage.
Early birds get there first
At least 30 minutes before the start of the auction! That’s what you should aim for, this will give you leverage to register and to bid with at most calm, and smoother nerves as you possibly can.
Think like a poker player!
Control your emotions at auction because uncontrolled reactions will cost you money. The biggest mistake that people pay for ‘with interest’ is when they get carried away and end up paying too much for the property, but eventually they regret it for a long, long time.
Similarly, if you’re the top bidder and others have stopped bidding; do not raise your bid! The auctioneer or selling agent might put pressure on you, and amazingly, too often top bidders lose track of their bids, get nervous, and in confusion they raise their own bid.
Reconfirm, don’t be shy!
The auctioneer may never opt to tell you whether the property is on the market or not, but you have the right to ask. All properties have a reserve and the selling agent and auctioneer always have the info about it. You may wait till the property has stretched to the reserve before you bid as there is not a lot of point bidding until then. Wait till a property is called on the market, as there is the probability that may be bidding against a dummy bidder.
One last tip!
Before signing the contract, confirm with the agent about the payment procedure. Once you counter sign the contract an absolute contract exists between you and the seller. So make sure about every clause before the sale is complete.