With the heated property market in Auckland, many buyers are frustrated after missing out on a few auctions and just want to know if they have a shot at owning the home. They want to know where the vendor is sitting in terms of their price expectations.
Most vendors understand that the value of anything is only what someone is prepared to pay for it. The value of an item then comes down to supply and demand. With the property market in Manukau still very hot and in demand it does push prices up hence why I feel auctions are the best method to achieving vendors a top sale price.
Here are a few tips to take away with you:
- Give strong and confident bids, making eye contact with the auctioneer. If you are not confident, ask a family member to help or the real estate agent. The larger your bids the more stronger you look in the arena.
- Bidding amounts will increase at various levels depending on the value of the house and will be at steps chosen by the auctioneer. But you can offer a lower bid if you like and remember to leave some 'fighting' money at the end. Know your limit and stick to it. Come to the auction with three prices in mind: one where it’s a bargain; one what it’s worth; and one that you feel is a premium. It’s a a good idea to visit other auctions as well so you know what to expect.
- Find a place you can watch other bidders from, and watch their body language. Be aware of yours too — other bidders and the auctioneer are all watching. If you give away how much you want it, the auctioneer may pick up on the fact you are likely to bid higher and pay more — so have your 'poker face' on.
- Bid quickly and confidently. This tells the other bidders you’ll pay whatever it takes. Putting in a bid twice the size of the opponents can also put them off.
- If a house doesn't reach reserve it will be passed in. The highest bidder is then given the first opportunity to negotiate the sale, so try and be the last bid.
- An auction is a cash sale, if you are the winning bidder, you'll pay a previously agreed deposit (usually 10%), sign the sale and purchase agreement, and walk away the proud owner of a new home — congratulations!