How to Bid at an Auction
House auctions can seem overwhelming and stressful. With all the big numbers flying around and the money at stake, it’s natural to feel somewhat intimidated or anxious about the process. Here are a few tips to help you feel at ease while bidding at a house auction.
6 TIPS TO HELP YOU BID AT A HOUSE AUCTION
DO YOUR RESEARCH
First and foremost you need to do your research when considering bidding for a property at a house auction. This is so that you have a reasonable idea of what the house is worth. To do this you can talk to an appraiser or ask the selling agent for information and comparable sales. Your research could also include determining factors that are specific to your needs. For example, if you’re planning to renovate the home, find out what renovations have been approved in the area.
PREPARE YOUR FINANCES
Once you have done the research and are still interested in bidding, the next step is to ensure pre-approval for your home loan. This will give you a firm idea of how much money you can potentially bid. It also gives you some assurance that you will be approved for your home loan if you place the winning bid at auction.
How to Get Approved for your First Mortgage
GET EXPERIENCE
The next thing to do is practice. This does not mean going to house auctions and bidding without the desire to buy. What you can do is show up to auctions and watch to get a feel for how they work. This will normalise the process for you, allowing you to focus when it comes time for your own auction rather than become overwhelmed or confused.
SET A LIMIT
One of the most important steps when bidding at a house auction is to set a limit for yourself. This will be based upon both your research and your pre-approved home loan. Come up with the highest number you’re willing to spend on at the house auction and don’t go over it. It can be easy to get swept up in the competitive nature of house auctions, so setting a limit for yourself will prevent you from overspending on a whim.
DON’T PANIC
When it comes time to bid, stay calm. Take it slow and start with an early bid at a low amount. Be confident and clear as you place your bids, and don’t rush. The slower the process, the more likely it is that the seller reduces the reserve price.
ASK FOR ADVICE
If you still don’t feel confident bidding at auction, ask a professional for advice. Speak to one of our realtors for information regarding house auctions and how they run. To contact us, click here.