The property market is booming in Sydney, meaning buyers are pouncing on houses for sale. If you are searching for your dream home, auction day can be a very anxious time. It’s easy to get intimidated as an auction if it’s your first time, but don’t let nerves get the better of you. A successful auction is all about tactics, so we have decided to give you some tricks of the trade. Below are the first five steps you should take leading up to your first bid.
1. Research, research, research
Just like at school, if you want to succeed in the property market, doing your homework is key. Before you sign on the dotted line, it’s important you understand the market. By getting a good feel for the market, you will learn how you as a buyer fits into it. For the months leading up to purchasing your home immerse yourself in the market. Go to open inspections and ask questions, even if you’re not interested in the home. It’s also a great idea to go to as many auctions as you can, so you can observe what it’s like.
2. No question is a stupid question
Knowledge is power so be thorough in your approach. Before attending the auction of your potential house, read the contract back to front and inside out. Make sure you ask the agent any and every question you can think of, even if you feel silly. It’s important you don’t leave any stone unturned in your pursuit of your dream home. If you want to establish special considerations like an extended settlement term or a smaller deposit, you must discuss these with the real estate agent prior to the auction.
3. Establish a budget that is rounded by an uneven number
For many, auction time can bring out the nerves and make people do irrational things. When tension is high and the bids are being called out, it can make usually rational people do illogical things. This is why it is important to set a budget before the auction. At a time when you are feeling calm and collected determine a realistic budget you must stick by. Instead of sticking to rounded numbers like $600,000 try coming up with an unrounded number like, $609,000. Most buyers will try and stikc with rounded numbers, so unrounded numbers could give you the advantage.
4. Position yourself at the front during the auction
Some buyers think they should be aloof and not make themselves known, however, this is not the case. Instead make sure you make yourself known. Position yourself at the front of the pack right in front of the auctioneer. This will give you a bird-eye view of your competition. It also gives off a powerful impression and other buyers will know you’re here to do business. Being confident is key in buying. To assert yourself even more, greet the agent and auctioneer by name. This will give other bidders the impression that you are serious about bidding, which might make them back down.
5. Start strong and powerful
Don’t stand back and let other bidders call the shots. Get in early and exert your dominance. By calling the shots you will show you mean business and begin controlling the auction. This confidence could potentially intimidate other bidders and make them withdraw. Just think, if there aren’t any serious bidders then you are in pole position.
If you want to know what to do after the first bid then keep an eye out for our next article, outlining the following steps. In the mean time, check out the houses for sale in Sydney on BidRhino.