There are few situations more stressful and fraught than bidding at a real estate auction for the property you’ve fallen hard for. Eminem might well have been describing the fear of the novice bidder when rapping ‘palms are sweaty, knees weak, arms are heavy…nervous, but on the surface…looks calm and ready’.
Our auction experts at Atria have put together some useful tips to help you avoid the sweaty palms, minimise the nerves and bid at auction like a boss. Here’s how.
Be prepared!
Before you register and enter the bidding fray, you must know your limit, which represents the absolute last dollar you can commit before walking away, and also have a clear understanding of the terms and conditions of the auction. This vital homework is necessary to avoid financial over-commitment in the heat of the moment. The easiest way to become acquainted with the jurisdictional rules of auction in your state is to attend several auctions as a spectator and see how the process unfolds. Also, speak to your friendly agent (that’s us!) who will step you through the auction procedure from a buyer’s perspective, so you’re ‘calm and ready’ come auction day.
Another benefit of auction spectating is that it allows you to experience the adrenaline-fuelled rush of final bidding without actually bidding yourself. It’s a helpful rehearsal for the real thing. Likewise you can witness and assess different bidding tactics (go hard early, versus the last-minute swoop) and even gauge the best position to stand in when bidding. Front or back? Which place allows you to maintain eye contact with the auctioneer and other bidders? This knowledge is empowering and will help you greatly in your preparation prior to auction.
Channel your Lady Gaga
See what we did there? Musical genre-mash aside, you need to bring your best ‘poker face’ to auction and stay cool. If you’re an emotional being (and most of us are) consider enlisting a friend to bid on your behalf, or engage a buyer’s advocate to professionally manage the process for you. If you’ve done your homework, know your limit, read the contract and have a deposit ready, then you’ve done yourself a massive favour and the poker face will likely remain flawlessly intact. OK, we’re going there again, cue Kenny Rogers `you’ve got to know when to hold ‘em, know when to fold ‘em, know when to walk away and know when to run.’
But what if it’s an online auction?
In 2022 online auctions will continue to feature heavily in the real-estate landscape and are likely to remain a permanent option moving forward. For many people this is a huge positive, removing much of the stress of the live auction spectacle.
If you’re bidding online, speak to the auctioneer about the rules that will apply, such as having your camera on or completing any paperwork for a buyer’s advocate or other agent who may be bidding on your behalf. Familiarise yourself with the terms and conditions of sale and the available payment options. You may be required to pre-register your deposit, this involves filling out the necessary online forms prior to bidding. This process varies depending on the software platform and is designed to limit the online auction to genuine bidders only. Before bidding you should know what platform (e.g. Zoom) on which the auction will take place, and ensure you are familiar with its features.
This all sounds like hard work but it means that on the day, the process will be reasonably straightforward and (hopefully) stress free.
One final tip to sway the odds in your favour – many bidders unwittingly telegraph their moves by slowing down, faltering and shortening the bidding increments as they approach their limit. Atria auctioneers advise you to bid with confidence right up to your last. This keeps other bidders in the dark and increases the chances of your final bid being the winning one.
