Property Auctions: How You Can Win

by Josh Biggs in Tips on 27th March 2023

Property auctions involve the spending of hefty sums of money within short timeframes. Many property auction participants tend to turn to auction finance which allows them to flex their financial muscles. However, property auctions are not only about money. To win big, there are several other things you need to think about. Read on to know what they are.

1. Decide on Ideal and Maximum Prices

Deciding on ideal and maximum prices is important, and you do not want to leave this decision for the last minute. Ideally, you should decide on these prices ahead of the auction day, as the money you are spending will either be capped by the amount you have in your savings or how much bridging finance for auction property you have been offered by a reputable broker. It’s also important that you stick to your budget no matter what happens during the auction.
 

2. Reach Early

If you have never attended an auction before, you should make it a point to reach the venue early. Showing up late would most likely mean a spot at the back, which no one enjoys. The auctioneer would have a better chance of seeing you if you are somewhere near the front. Furthermore, be patient, as property auctions can last well beyond 3 hours.

3. Keep Your Rationality and Calmness Intact

Auctions have been around for a long time, and they always want participants to shell out more money than they desire. After a property auction gets going, the environment is likely to turn very noisy and heated. In such a scenario, it’s very easy for participants to lose their calm and become competitive. Don’t make these mistakes, and remember to stick to your ideal and maximum prices.

4. Ditch the Winning Mentality

Confused? Of course, when you participate in an auction, it would be natural for you to want to win. However, at the end of the day, you can only consider yourself a winner if you get the property at a price within your ideal and maximum range. If you win by spending far more than your maximum limit, it would not really count as a win, would it?

5. Confidence is Key

Bidders tend to lose their nerve once they are close to their maximum limits. This typically manifests in unconfident bids, which act as motivation for other bidders. So, irrespective of what the going price is, you should sound confident. This approach often unnerves other participants in the auction. You should also check the bidding momentum. If things escalate rapidly, prices can skyrocket. In such a situation, it’s best to play it cool so the momentum drops.

6. Choose a Bidding Strategy that Matches Your Personality

Some bidders tend to keep bidding through the entirety of an auction, while others slow things down from time to time. Then there are bidders that start participating right at the end. Ultimately, the strategy you choose boils down to your personality.

Conclusion

Property auctions can be stressful events. However, with the right attitude and strategies, you can give yourself the best chance of winning. If you want to keep getting better at the property auction game, participate in as many auctions as you possibly can.

Categories: Tips