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How to bid at Auction

I thought I would try something a little different this week.

I am sure you have been bombarded over the years with articles about how to bid at Auction.

Today, I am going to suggest a few simple tips you can implement and then show you how it plays out at a LIVE Auction!

This could go one of two ways!

Background Auction

In this video, I am bidding for one of our overseas clients on an amazing property in one of Brisbane’s blue chip, northern suburbs.

The property is currently situated on 2 x 600sqm lots, which is rare enough, however you can actually create 3 x 400sqm lots and build three separate houses!

These types of properties are lucky to come up once or twice a year in these blue chip locations, probably the reason there were 17 registered bidders and a decent crowd looking on.

So, we had to bring our A game, which brings me to my first tip!

Tip 1 — Bring you’re A game

Look like you are there for business — dress for success

Most buyers at the Auction are casually dressed, but it is important to take it up a notch.

When I first met the agent on the day she instantly said, “Oh you must be an agent”, I looked and acted differently.

I always make a point of meeting the agency staff and importantly I also take the time to introduce myself to the Auctioneer and have a quick chat and I do it in front of everybody.

Body Language and image play a big part at any Auction and if you can get even the slightest edge it will put you in a strong position.

It’s like a good bluff in poker!

Tip 2 — A strong, quick opening bid

As I have mentioned, this type of opportunity is very rare, so the need for a strong opening bid was a must!

I don’t understand why Auctions take a while to get going sometimes, after all they all want to buy right?  Body Language

With 17 registered bidders, it was never going to sell for a bargain!

My opening bid was strong, loud and instant and toward the top of our budget… and it worked!

I needed to send a message and take out the bargain hunters and emotional buyers and show to everyone else that I was there to buy!

There were no further bids at this point and the Auctioneer referred to his sellers.

Shortly after, the property was then on the market and that’s where it started to heat up!

But I had knocked out 90% of the competition and it was down to 2.

Tip 3 — Avoid a bidding war

Avoid bidding in increments of $1,000 if you can, even towards the end.

BidIn this video, we were getting close to our budget and the other bidder was increasing their bids by $1,000.

So, I went up by $10,000 and importantly, showed no signs of weakness or indifference.

Bids must be instantaneous and strong and there should be no sign of slowing down.

Of course, our clients did not have an endless budget, but that is the impression you want to give, whether you are $20,000 from maxing out or just $2,000.

In the end the $10,000 increments were too big to jump over, as opposed to their $1,000 increments and we got the result that we were after.

Summary

There are a couple of little things you can do that can make a big difference when you are bidding at Auction.

Firstly, dress to impress and dress for success — stand out!

Look like a professional and talk to the agents and Auctioneer, it will send a strong message that you are not just another number in the crowd. How To Bid At Auction.

Once the Auction gets underway, a strong opening bid can set other bidders back and knock out the competition.

You are now in control and have other potential buyers on the back foot.

This will also take some of the bargain hunters and emotional buyers out of play and drown the momentum.

Avoid a bidding war by increasing your increments at a higher rate.

$1,000 bids are easily jumped, but $5,000 or $10,000 bids are harder and take more thought and hesitation.

So let’s see how it played out

How to bid at Auction

 

About Brett Warren is Director of Metropole Properties Brisbane and uses his two decades of property investment experience to advise clients how to grow, protect and pass on their build their wealth through property. Visit: Metropole Brisbane
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