Investing in property often involves attending an auction and bidding successfully. However, auctions can go downhill very quickly in a variety of ways. But they are not the time to make mistakes. When you’re dealing with hundreds of thousands of dollars, a small mistake can mean a lot. You might bid too early, showing interest in a property that is not even on the market. Or even worse, you might get caught up in the moment and bid against yourself. You might go over your maximum limit because the property is your “dream” investment, putting even more pressure on your financial situation. You might misread the auctioneer or misunderstand what they’re saying, which could result in you not bidding when you could have won. In these situations, the only loser is you.
Avoid making investment mistakes by taking note of these 7 tips to survive an auction:
- Thoroughly read over the contract before the auction. Take note of settlement dates and inclusions. Ensure that you are okay with these terms, so that when you’re bidding, you know what you’re getting.
- Get to know the auctioneer. Ask questions, especially in regards to the reserve price. There’s nothing in it for you if you bid and the house isn’t actually on the market. Ensure that the auctioneer knows of your interest, so that on the day, they take notice of you.
- Go to auctions, even for properties you are not interested in. Get used to the atmosphere. Observe bidders and how they act. Preferably go to auctions being conducted by the same selling agent. Observe and identify their selling techniques, so you don’t fall for them on the big day.
- Keep your emotions under control. Don’t get your heart set on one property. Remember that there are thousands of investment opportunities, and if you miss this one, another is more than likely to pop up soon. Be objective and before bidding, ask yourself if you really think the property is worth that much. If its not, even if you could bid, don’t. Whilst you might win on the day, you won’t be winning in the long run if you spend too much on a mediocre property.
- Know your limit. Know how much you are willing to pay for the property. Don’t get caught up! Control your emotions. Auctions are not a time to go on a spending spree.
- Have a game plan and be confident. If you need it, ask a friend or even employ a professional to accompany you. Ask them to listen carefully to the auctioneer and to other bidders, in case you don’t hear something vital. Bid confidently, and ensure that you are easily seen. You don’t want to miss out on your ideal investment property just because you were standing behind tall people or a tree. Position yourself where the auctioneer and other bidders can easily see you.
- Happy bidding! Property investment is a choice you have made and shouldn’t be unreasonably stressful. The property you’re bidding on could be a large part of your life, so enjoy the ride! If you’re not successful the first time, identify mistakes you’ve made and learn from them. Implement measures to ensure you don’t make the same mistakes again.
Follow these tips and you’re set up for success at auctions. Best of luck!
