FAQ: What is the best way to bid at auction?
Considering buying a property through auction? It’s one of those sales methods that feels more like an art than a science. Do you bid first? Last? Where should you stand? Forge ahead or wait and see? One of the most common questions we get is what exactly is the ‘best’ way to bid – how you can knock out the competition and walk away with the house keys.
To help you out in securing the best auction result as a buyer, here are a few tips on good bidding technique.
When should you bid?
With bids flying left, right and centre, it can be hard to tell when you should take the plunge. Whether you’re buying real estate in New Zealand or Australia, your bidding technique ultimately ends up like a game of Texas Hold ‘Em – showing your hand too early can be disastrous.
When you bid first, so long as you do it confidently, you are telling the room that you are in control of this situation.
Sometimes it’s best to smash that pressure yourself rather than waiting for someone else to start. When you bid first, so long as you do it confidently, you are telling the room that you are in control of this situation. That you aren’t scared of stepping up to the plate, and that you are the one to beat in this room.
Making the first bid can make you out to be a confident, powerful auction player, ready to start the fight and end it too. However, making the first bid too high can end up with you simply fizzling out as you hit your limit, or even worse, missing out on a bargain by opening too high.
So when considering whether to bid first or lay in wait, just remember – there is no ‘right’ time to bid, just make sure you know what you are getting yourself into by bidding first!
How should you bid?
Confidence is what will win you the auction.
You will find all sorts of different tactics useful. Whether it’s bidding quickly in small increments to tire out the competition, or knocking out other buyers with a big $50,000 bid higher than the previous highest, there’s always one constant: confidence.
Confidence is what will win you the auction, confidence is what will drive other buyers off, confidence is what will give you vendor preference if the house goes to negotiation. An auction is a competition, and while deep pockets certainly help, if you want to get the best auction result as a buyer, you can’t be doing it meekly.
Bid strongly, bid firmly and most of all, bid confidently. The auction floor is no place for the meek, so if you’re in it to win it, don’t be bullied into backing down!