"Auction Action - The Insiders Guide"

AUCTION ACTION - THE INSIDERS GUIDE!
The popularity of real estate reality shows like Hot Property has increased the interest in property auctions held in Sydney metropolitan areas.

Taking a property to auction indicates the vendor is serious about selling and also sets a date when it could be sold, which puts pressure on the buyer to perform.

If you like the property and are a serious buyer my recommendation is to be well organised before auction day. If this is the first time you have attended an auction there are a number of things you should do prior to the day to ensure you understand the process including:

1. Make sure you are getting the right advice by speaking to your financial institution to confirm pre-approval for your finance REMEMBER if the bid goes your way you are liable to complete the purchase

2. Inspect the property thoroughly, go back as many times as you need to feel comfortable about the home and land, the Agent should be able to arrange suitable access to allow you to do this and to organize pre-purchase inspections and reports, it is absolutely essential you get professional reports done e.g. Building & Pest Report; etc. Our previous e-Newsletters have covered these requirements and various Reports needed, please refer the Archive section on our website www.conveyances.net.au

3. If you have any queries in relation to the home and its condition, then make sure you get those concerns looked at prior to auction day, as we have said many times follow the rule ‘CAVEAT EMPTOR’ – "Let the buyer beware".

4. To make the transaction go as smoothly as possible enabling you to bid with confidence ensure you are known by the Agent, talk to them honestly and ask for any and all instructions regarding the deposit which is required to be paid on the auction day, as well as the settlement period and any variations that you may require.

5. Register for the auction prior to the auction day to beat the rush.
Be early on auction day, be ready, be calm and be determined!

10 Strategies to give you the Advantage at Auction:

1. Dress to impress; wear a suit; create the perception that you have the money and budget to beat the competition, park you prestigious car at front of property or borrow someone’s prestige car and stand next to it to create impression you are cashed up and have the funds to buy.

2. Position yourself towards the front of the Auction near the Auctioneer – you can see who you are bidding against.

3. Ask a Question at the beginning of the Auction to direct attention towards you; a question that makes other buyers hesitant; e.g. any special levies (apartment), or car park on Title, or what development plans for next door! Hopefully unnerve bidders.

4. Keep your Body Language and gestures positive and confident at all times – try to make direct eye contact with competing bidders with a confident ice cool stare.

5. Ensure you have a pre auction limit – do not over pay by tens of thousands of dollars.

6. Ask the Agent how many contracts have been issued and number of Pest, Building or strata reports commissioned?

7. Ask the Auctioneer; "Is the property on the market? Has the reserve been met and are you selling" – Hopefully bidding will stall; Auctioneer & Agent will go inside for a break; they may try to convince the Vendor to lower the reserve price and put the property on the market for an unreserved sale- hopefully agent tells Vendor there are bidders who won’t bid until the property is on the market.

8. Call out your Bids with full numbers: Call $301,000 not $1000 dollar bids; call out bids assertively and confidently; looks like you are not going to stop and will continue to buy the property.

9. Break down your bids to slow the bidding if required: e.g. if Auctioneer asks for $5,000 bids, offer $1,000 or $2,500 bids so momentum is slowed.

10. Use Knockout Bids: Double to triple another Bidders amount to try and psyche them out: You can also pretend you are out and wait until the third call, before coming in again with a knockout bid.

GARTH BROWNS COMMENT: www.conveyancers.net.au - ph. 1300 ASK CPC
It’s a good idea to do your 'Due Diligence' by attending local auctions in the same district to get a feel of the interest in actions in that area and to gain valuable insight into buyer patterns and habits at an auction.

Also talk to any family or friends who have purchased a property at Auction, they will be your best source of first hand information.

Buying at auction is a great way to go, as it's an open and transparent environment.

Enjoy the experience and all the best.

Please don’t hesitate to call Garth Brown to find out more about the auction process and to discuss all your conveyancing requirements.