Madonna Boon
Property Manager
CONTROLLING your body language, being aware of auctioneer’s trickery and managing your bidding pace can help lead to success in auctions, says property expert Universal Buyers Agents.
UBA property expert Darren Piper said auctions can be an intimidating minefield for buyers and can lead to overpayment or disappointment if you fail to stick to a strategy.
“Buying your dream home in certain high demand areas may only be possible via an auction,” Mr Piper said.
“But it can often drive up the price by introducing competition and urgency to the buying process.
“Bidding at auctions is a skill you should spend some learning before you dive in or engage the help of a buyer’s agent to take control of the process for you.”
First and foremost, he recommends buyers start the bidding prepared as it does not follow the “offer and acceptance” method of a normal sale.
“The normal buying method allows you to do your research after the acceptance of your offer and before the signing of the property transaction contract,” Mr Piper said.
“This is not the case for an auction, you need to gather all the information you need before you enter the auction.
“You should also never run late for an auction; we’ve seen countless examples of buyers who arrived late only to find their preferred property had sold and even at prices well below their limit.
He recommends arriving early to register and position yourself smartly in the area, scan other bidders and determine their number.
Cooling off periods often don’t apply at auctions as well so buyers must be prepared to follow through on their bid at the fall of the hammer.
“You should always bid within an amount you can commit to,” Mr Piper said.
“That’s why you should always come to the auction knowing exactly what your budget is. A good trick is to set the maximum amount you can spend above a round number, if you decided that $900,000 is your upper limit, consider whether you could stretch to $904,000, this could help you win over bidders who have the same as your initial upper limit.”
Mr Piper also recommends controlling the bidding pace by slowing down and proceeding in smaller increments.
“Place your bid early on, as it allows you leeway to set the pace. You may also psychologically influence other bidders to continue in $5,000 increments, instead of $10,000, which is the average bidding increment at real estate auctions,” he said.
“You can also slow the pace by giving the auctioneers a hard time adding up the amounts before calling out the next bid, give your bids odd numbers that take a few more seconds to add up.”
Auctioneers also use several tricks including a keen eye for body language which can give a buyer’s intent away.
“Do your research beforehand, it makes it easier not to get caught up in emotion that can easily be read.”
Finally, he recommends if the process is too stressful or needs an expert eye, buyers should engage help from a buyer’s agent to ensure they get the best deal.
A Pre-Settlement inspection is performed 2-3 days before settlement. This allows the property sellers to amend any issues before settlement and avoid any delay.
This process is important to ensuring a smooth and stress-free handover!
We perform hundreds of Pre-Settlement inspections on behalf of our clients every year. It is rare that we come into issues with a property, BUT on the off chance that we do, it has saved our clients a world of pain and money in the long run.
Looking for a professional buyers agent to help you in making a simple and stress-free purchase?
While the selling agents motivations are to gauge the interest and position of potential buyers, as Buyers Agents, we like to flip the conversation, asking them questions of our own.
Here are 2 questions our team use to gain valuable information from a selling agent that will empower our negotiations.
Sellers situations vary from moving interstate, downsizing, financial situations or simply a change of scenery. The circumstances around this sale will also determine the urgency behind the sale, or lack of.
‘What price will NOT buy the property’
Simply flipping this question will provide you with a benchmark to work from. As Buyers Agents in Brisbane we are always looking to secure a property at the best possible price. So, if we can understand their lowest, this provides us with a starting point to work up from, rather than down.
So be sure to take these questions for a spin at this weekends opens!
In a market where agents are supplying vague price guides, low-balling to generate interest and owners that are still wanting unrealistic prices, how can YOU the buyer accurately create a fair price guide?
Don’t let a seller or agent talk you into a price guide. Always make sure you do your own homework and come to your own valuation. This will ensure you retain the power and will ensure you avoid overpaying.
‘To create the most respected Buyers Agency within Australia by leading the industry in a people-centric collaborative culture.’
This simply means we create a dynamic and collaborative team environment where all knowledge and experience is shared with everyone. This approach enables each member to carry a diverse understanding of the buying market and deliver this to our clients that achieves not only a great experience, but an exceptional result…
Take a listen below on how our approach has helped our clients achieve their property goals!
Property Manager
Buyers Agent
Business Development Manager
Buyers Agent
Searcher and Sourcer
Buyers Agent
Searcher and Sourcer – Team Piper
Buyers Agent
Senior Property Manager
Client Concierge
Associate
Buyers Agent
