If it’s your first time to go to a property auction then I might have some tips that can help you out and make you not stand out too much. Those who are experienced with property auctions know how to spot newbies in the field and will do anything to intimidate those newbies into not bidding properly. Here are some pointers on how to survive property auctions.
1. Know the rules – before even starting the auction, you should always know the house rules by heart. Go to the auction office and get a copy of the rules from the head or the person in charge. Don’t ask from other real estate agents in the area because this will just make you stand out and make you become a target for the more professional agents out there.
2. Dress to kill – There will be agents out there that are intimidated by people who dress like they were sent there for a purpose. Looking like a lawyer or a banker representative will give them the impression that you’re there for the sole purpose of winning a certain listing and have an unlimited supply of funds to draw from. A lot of real estate agents will be careful and will not try to outbid you if they think that you have all the money in the world to get that certain piece of property.
3. Know the value – A couple of days before the auction, go out and research on the true value of the property up for auction. Knowing the true value will enable you to structure your bids and not overbid on anything that you plan on getting. When auction time comes, it’s always best to come prepared with all of the information.
4. Have a limit – When bidding for an auction property, always have a set limit for any given listing. The reason why you have to have a limit is because when in the heat of the moment, you can overbid for a property if things get heated. If you have a set limit, stick with it and let go of the listing if the price goes well above what you planned to pay for it.
5. Stay out of bidding wars – When you notice that two or more agents are trying to outbid each other on a certain listing, it’s time to step aside. The reason for stepping aside is that in bidding wars, the only winner is the owner of the lot being sold. Bidding wars lead to rather inflated prices and can balloon out of control if you look at it.
6. Send a representative – If you can’t control yourself in situations like this then it’s best if you send someone else to do the bidding for you. Make it clear to that person what the limits for each listing is and that they should follow it. Objective bidding can only be done if the one doing it isn’t emotionally attached to the thing up for grabs.
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