BUYING AT AN AUCTION - AUSSIE STYLE
Australians
have become known for their partiality to auctions, so it is no
surprise that
there's a lot more to bidding for a property down under, than deciding
what your
price ceiling is and raising your hand at appropriate times. The
Aussies have
made a study of it and have some handy tips that you might like to try
locally.
One thing they are in agreement with is to start strategising long before auction day. Interestingly, Lifekacker.com, because of the popularity and frenetic bidding that takes place says preferably you should avoid auctions altogether if you really want a bargain.
Quoting Frank Valentic, director of property hunting and auction service Advantage Property Consulting, Lifehacker offers these suggestions on how to win at a property auction:
Mind you, auctioneers are hiring bidding floor accomplices less these days. Invisible bidders, sadly seem to be coming into vogue. You know, when the auctioneer's assistant looks earnestly at you while you are waiting patiently - arms crossed - for your property to come up for sale, then nods affirmatively to her boss on the stage and he then deftly ups the price a little. And you aren't sure whether opening and closing your eyelashes signalled your interest in that particular offering?
It can be scary when you're chosen as the "phantom bidder" in the crowd and have no intention of buying that overpriced service station in a bad part of town or an odd-shaped Platteland bank in a dying, one-horse town...
But that is that nature of auctions – lots of hype, rousing up the rabble and generally hoping common sense was left at home. A dangerous place to be for innocent, serious buyers.
One thing they are in agreement with is to start strategising long before auction day. Interestingly, Lifekacker.com, because of the popularity and frenetic bidding that takes place says preferably you should avoid auctions altogether if you really want a bargain.
Quoting Frank Valentic, director of property hunting and auction service Advantage Property Consulting, Lifehacker offers these suggestions on how to win at a property auction:
- First try and convince the vendor to sell ahead of time. "You're playing in a tough sellers' market. Take the property off the market beforehand if you can."
- Present to impress. Wear your most expensive suit and look professional in order to ward off other bidders. "If people think you have more money than they do, they will stop bidding sooner." Valentic also suggests renting a prestige car (or taking one for a test drive) and ostentatiously parking it near the venue.
- Use questions to throw off other bidders. "Ask a question at the start to unnerve other bidders." He reckons asking for information on nearby developments or the area's heritage status can work a treat. "An experienced auctioneer will hose these down as quickly as possible," but these comments "can still convince some bidders to pull back".
- Make your first bid close to the reserve. "Wait for a low first bid and increase to around the reserve," is the advice "That can eliminate low-bidding competitors and moves the auction into a more realistic phase...Cut out as many bidders with your first bid as you can".
- State the full price every time. In the race to lodge your bid, it's often tempting simply to state the last few digits, or the extra amount your offering, but that's not the ideal approach. They say, "Make sure you don't just say 500, or whatever the increment is. State the full price. You want every bidder to know exactly what you're paying every time. Always call your bids out with full numbers." Taking longer to state your bid also ensures that you're still in the race. "Make sure you know you've got the bid in a tight auction," it emphasises.
- Bid quickly and definitively. At many auctions, there's a pause while couples negotiate once they are near their limit. If you have a definite limit, you can bid without pausing and scare off potential rivals. "Bid straight back without hesitation,"
- Stick to your pre-auction limit, but don't end on a round number. "This is the biggest mistake people make at an auction," Valentic notes to Lifehacker.
- Realise that not all auctions will go your way. "An auction is a game of poker - sometimes you don't have to have the highest hand to win," Valentic said. However, there are limits. If someone has more than you to spend, no amount of posturing and planning is going to help, he adds.
Mind you, auctioneers are hiring bidding floor accomplices less these days. Invisible bidders, sadly seem to be coming into vogue. You know, when the auctioneer's assistant looks earnestly at you while you are waiting patiently - arms crossed - for your property to come up for sale, then nods affirmatively to her boss on the stage and he then deftly ups the price a little. And you aren't sure whether opening and closing your eyelashes signalled your interest in that particular offering?
It can be scary when you're chosen as the "phantom bidder" in the crowd and have no intention of buying that overpriced service station in a bad part of town or an odd-shaped Platteland bank in a dying, one-horse town...
But that is that nature of auctions – lots of hype, rousing up the rabble and generally hoping common sense was left at home. A dangerous place to be for innocent, serious buyers.
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