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Success strategies for bidding at auction

We all know that the property market in the south-eastern suburbs is red hot right now, with auction clearance rates consistently hitting the high 80 per cent range. The combination of a shortage of available property for sale and increased numbers of confident buyers have resulted in a very competitive environment when you attend an auction to bid.

With this in mind, we thought this might be a good time to touch base with a few of the auctioneers around the Barry Plant network to find out what tips they might provide on winning on auction day.

Here’s a summary of the key points:

  • Preparation makes a difference. Make sure you know the current values are in the area, so you can be confident about what your maximum bid is going to be. But be aware that current levels of competition could push the price above what past sales might indicate.
  • Demonstrate confidence. Bid boldly and without hesitation. Fast bidding can convince other bidders that you aren’t going to stop, whereas hesitation can give other bidders confidence.
  • Get on the front foot. Showing confidence can also come down to your positioning. Be front and centre during the auction, rather than hiding at the back of the crowd.
  • Understand the psychology. There are two types of winners at auctions. Those that simply have the biggest budget (obviously), and those that convince everyone else that they have the biggest budget, (even though they don’t). If you’ve ever watched professional poker players, you’ll know what we mean.
  • How much to bid. Another way to convince your competition that you have the biggest budget is to bid an amount larger than what the auctioneer calls for. Some refer to this as a ‘knockout bid’. In contrast, asking the auctioneer for smaller bids can often give your competition added confidence that you are close to the limit of your budget.

Whilst these tips will hopefully be of assistance in planning for your next auction, keep in mind that every situation is different. So, if you would like some one-on-one advice that relates to your specific situation and circumstances, feel free to give us a call this week at Barry Plant Cranbourne on 5990 9400.

Best wishes,

Barry Plant Real Estate

Cranbourne & Frankston