MELBOURNE is Australia’s auction capital, so chances are you will have to raise your hand to secure your dream home.
However, there are some strategies to reduce stress on auction day.
According to Harcourts Victoria chief executive Sadhana Smiles, these five things are important to consider before raising your hand.
ALWAYS BID CONFIDENTLY
“This shows the auctioneer and, more importantly, the other bidders, that you are here to buy and mean business,” Ms Smiles said.
“Calling out the total value or increment further boosts your confidence to others, rather than a hand wave or body movement,” Ms Smiles said.
BID FIRST AND BID HIGH
“The auctions that start low always achieve high results. The caveat to this is that there is plenty of interest,” Ms Smiles said.
“If the home is roughly worth $500,000, then don’t start the bidding at $400,000 as this gets everyone involved. You want to create as little competition as possible, with a more aggressive start being say $480,000 or $500,000.”
HAVE HIGH INCREMENTS
“If the bidding is going up in $10,000s, increase by $20,000 or higher as this puts others off,” Ms Smiles said.
“You want people to tap out and think that you won’t give up, so they may as well stop.”
DON’T MAKE SMALL BIDS
“Never get into $1,000 or $500 bids, this leaves the door open for everyone,” Ms Smiles said. “There are countless auctions where we have achieved over $20,000, $30,000, $40,000 worth of $500 bids, whereas if someone just bid $10,000 or $20,000 the auction would have stopped.”
News Credit Goes To This Website