Don't attend an auction without bidding



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April 25, 2011

Graeme Hennessy, Principle of Premier Property Auctions in Sydney, says the biggest mistake people make at auction is to hang back and not bid:

“A lot of people think it’s smart not to bid in the hopes they can snap up the property afterwards if it’s passed in,” Graham says. “It doesn’t really work. Nor does it if a buyer attends an auction and only joins in the bidding at the very end. It’s like going to the movies and going to sleep in the first half and only waking up for the last ten minutes. If you’re genuinely interested in the property you need to bid.”

Do try and bluff rival bidders
Hennessy also advises that if you really want to win at auction be bold when it gets to the pointy end of the bidding.

“If you’re at an auction and can see a fair few people participating in the process, it’s a good idea to try and bluff the other buyers out of the market by significantly increasing your bid, making sure of course that it’s still under your upper limit.”

For example, if you have a property worth $1 million and there are three or four people bidding and the price gets up to $950,00 and you’re prepared to pay $1 million, rather than throw in a two or five thousand dollar bid, you’re better off throwing in a $20,000 or $25,000 bid. Quite often it will scare people away.”

General rules for auction:

  • Do a pest and building inspection if the vendor hasn’t done it
  • Get advice on the contract of sale
  • Make sure you have your finance lined up

It goes without saying, compare all the different home loans available to ensure you are getting the best deal. Whether it’s a low lnterest home loan or a fixed rate home loan there are many different products to choose from.

Happy bidding!

 

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