How to win at an Auction
Winning at an Auction can be Challenging sometimes. Especially if you haven’t done some planning before: There is a lot of uncertainty involved, this is perhaps its greatest draw for investors looking for an unexpected bargain. That is why preparation and tactics are just as important in the battle to ensure you’re the last person standing when the gavel falls.
How win at an auction:
- Do your research and know your limit of how much you have to spend.
- Try to be the highest bidder in the event the property is passed in. Many agents will give the highest bidder the first ”right” to negotiate.
- During negotiations, keep one decision-maker away from the agent so that slows down the process and gives you time to think.
- Killer (or big over-the-top) bids can make a statement and scare off the competition at the beginning, but can cost you if things are dying down.
- Think two bids ahead so you can be fast in your counter bids and appear confident to others.
- Don’t bring your family – it signals that you’re keen, which works against you in negotiations.
- If you don’t feel confident enough to bid, consider asking a friend of family member, or employing a buyer’s agent.
- In this rising market, consider making a healthy, pre-auction offer.