WORKING out, just exactly how you should bid at auction can be a stressful business.
Do you rush in early and lay all your cards on the table? or hang back until it is announced on the market?
Gavl, which live streams auctions, has analysed the techniques that successful bidders use at more than 2500 auctions throughout Australia.
Gavl CEO Joel Smith said potential buyers should attend plenty of auctions beforehand to get a feel for how to bid and develop their strategy.
Here are his tips to help you bid like a boss:
“When you think of auctions, you might think of it as being fast-paced, with little time to think,’’ Mr Smiths aid.
Their analysis found the average time between bids at auction was just less than 30 seconds.
Mr Smith said bidders should use this time to think before placing their bid.
HOW MUCH DO YOU WANT TO DO UP?
Mr Smith said sizeable bids from other buyers shouldn’t scare you. He said bidders should instead focus on what they are prepared to spend and keep bidding until they hit their budget.
“You never know when your competition might bow out,’’ he said.
The data revealed that toward the end of the auction bidding tended to slow down.
“Bidding confidently at this point of the auction may show your opposition you mean business,’’ he said.
DO YOUR RESEARCH
The best way to find out about the local market is to watch property auctions in the area.
The research found there were an average 18 bids made at an auction.
“So be prepared to bid several times,’’ Mr Smith said.
HAVE A BACK UP PLAN
It the property is passed in, it doesn’t mean you missed out, you can still try and negotiate to buy it.
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