Let’s face it: auctions can be nerve-wracking, but they don’t have to be. With the right mindset and approach, you can feel more confident and increase your chances of using winning strategies for auctions to walk away with your dream property. Here are six practical strategies that might just help you win at your next auction.
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Keep Your Cards Close to Your Chest
One of the most important things to remember is not to reveal your maximum bid to the agent before the auction. Doing so might give the agent the chance to nudge you beyond your limit by hinting that you’re close to meeting the vendor’s expectations. Remember, it’s in their best interest to get the highest price possible since their commission is based on the sale amount. Stay cool, calm, and collected until it’s time to bid.
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Ask if the Reserve Price Has Been Met
You may have heard the term “reserve price” thrown around. This is the minimum amount the vendor is willing to accept for the property. Once bids reach this amount, the property is officially “on the market.” If it doesn’t meet the reserve, it will be “passed in” and not sold at auction.
It’s always worth asking whether the reserve has been met. While auctioneers don’t have to disclose this information, it doesn’t hurt to ask. Knowing when the reserve has been hit gives you a tactical advantage, allowing you to decide when to jump into the bidding.
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Ask Questions, But Know the Rules
Did you know that you can ask the auctioneer questions during the auction? It’s a great way to get additional information that might help you. For example, you can ask if the property is on the market yet or who has made a bid.
Just be mindful of the auction rules. Disrupting an auction is illegal, so make sure your questions are within reason. Most of the time, the auction rules are made available before the event, so it’s a good idea to familiarize yourself with them beforehand.
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Bid with Confidence
Confidence is key at auctions. When you bid, do it assertively. State the full price confidently rather than quietly muttering a number. This shows that you mean business and could intimidate other bidders.
Another tactic to consider is a “knockout bid,” where you bid significantly higher than the last offer to scare off less confident bidders. On the flip side, if bids are coming in quickly, you can slow things down by bidding in smaller increments than the auctioneer suggests.
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Bring in a Professional
Feeling the pressure? You can always enlist a buyer’s agent or advocate to do the bidding for you. These professionals aren’t emotionally invested and have plenty of auction experience. They’ll also stick to your limit and won’t get caught up in the moment. The Real Estate Buyer’s Agents Association of Australia offers some tips for choosing a buyer’s agent.
Alternatively, if you have a friend or family member with auction experience, they can step in to help—but remember, you’re responsible for the payment if they go over your limit!
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Be Prepared to Walk Away
Sometimes, no matter how much you’ve prepared, you won’t win the auction—and that’s okay. Treat any property reports or legal fees as part of the process, and don’t let them sway you into overspending.
If the bidding goes above your limit, don’t be afraid to walk away. You’re better off sticking to your budget than overcommitting financially.
Auctions can be emotional, but by following these practical strategies, you’ll be better prepared to handle the day—and who knows, you might just come out on top!
If you want to boost your chances of winning at an auction, contact our team today. We’re here to help you understand the winning strategies for auctions and guide you through the bidding process.
