Top Tips for Buying at Auction

By Greville Pabst on 31 Jul 2013
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Top Tips For Buying at Auction

Despite the hundreds of auctions held in Melbourne every weekend, many buyers continue to miss out on their dream home or carefully selected investment property.

In some cases it’s because they’re bidding against professional buyers’ representatives, but in many cases it’s simply due to inexperience and a lack of preparation.

So what steps can you take to increase your chances of placing the winning bid on your next property?

The key is to participate! Don’t wait for other bidders to start or for the property to pass in. Placing the highest bid at auction means that if the property is passed in you will be offered the first right of refusal to negotiate the purchase price. This means you could secure the property without any competition.

Are you willing to miss out on your dream home for the sake of $1,000? Bidders commonly approach an auction with a neat, rounded price limit but by making an odd bid (say $651,500) you might outbid your competitors without paying thousands more. While it’s important to set your budget, bidding at auction should be flexible and situation-specific.

Remember, when it comes to bidding, you’re there to win, so bid fast and confidently – don’t give your competition time to think. Stand where the auctioneer and other bidders can see you, and direct your focus towards your competition.

Knowing the tips and tricks used by the pros will help you hold your ground at auction, and hopefully submit a winning bid.

About the Author

Greville Pabst is the CEO and co-founder of WBP Property Group. He prides himself on leading a team of more than 100 highly skilled and certified property professionals in the delivery of objective and impartial property advice to Australian property investors. He is determined to help the everyday Australian make smarter property investment decisions.

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