How to secure your dream home at auction

The auction process is undoubtedly the most transparent sales method for transacting real estate, this makes it a popular choice for both buyers and sellers alike. With any major transaction, there is often a level of stress and intimidation. This can be heightened with the auction process due to the speed and competitive nature that comes with bidding for property publicly.

It’s important to do your research on the property before you bid at auction but it can also be just as important to plan and prepare your bidding strategy.

Our Director of Sales and Corporate Auctioneer, Bronte Manuel, has seen all sorts of bidding strategies over the years from bold and direct, to conservative and calculated. We asked him to give us some insights into what the best strategy is for securing a home under auction conditions.

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“There’s no hard and fast rules on how to bid at auction, I see all kinds of strategies and there’s no right and there’s no wrong. Successful bidding strategies are all about demonstrating strength, so coming into the auction with a big, bold, knockout bid at the start can show to the other bidders that you are here and you mean business. This in turn can knockout that tit-for-tat bidding which could incrementally result in you paying a higher price,” says Bronte.

The importance of knowing your budget and what you’re willing to pay for the property is also key, how you get to that number can happen in a wide range of ways but confidence is key and can all come down to throwing off the other bidders as much as anything as Bronte explains.

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“There are a lot of people who think they should wait until the first, second and third call before making their bid. I personally believe it’s best to bid immediately after your opposing bidder has placed a bid on the property, as this shows strength and that can a number of times result in the other bidder going, you know what? They’re going to be here all day, I may as well give up now,” Bronte said.

Whatever strategy you decide to take auction day, be sure you are fully prepared well before the first bid to increase your chances of a successful result.

For more information on bidding at auction, watch the video below or visit the SA Government website here.

ToopTV - Bidding at Auction

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