Auctioneers like to tell you that every auction day is unique, that bidding (and managing bidders) is an art, not a science and that there’s no such thing as a "typical" bidder.
But the reason they’re hired by the big agencies, or freelance so successfully, judge and win auctioning competitions is because they’re good at reading people.
Forget the joke "don’t scratch your head or you’ll have bought it" warning - the person wielding the hammer (and the many experienced spotters around the auction room) are better at reading the bidding signs than that.
And some forewarning is their most helpful tool.
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“I try to talk to the buyers before the auction,” says Mark Sumich, chief judge for the REINZ annual auctioneering championships. “I like to get an inkling of whether they’re fine on their own, or whether they’d like to have their hand held all the time.”
He says beyond that there isn’t a bidder stereotype - every auction is different.
Bayleys national head of auctions Conor Patton agrees. “It would be very very dangerous to assume. Sometimes the scruffiest person in the room has the deepest pockets. It would be a dangerous business to make assumptions,” he says.
He admits he’s been right in his guesses about as often as he’s been wrong on who in the room will hold the final bid.
That said, Patton can spot the first home bidders. They’re the ones who are a little bit more nervous, even if they’re being well looked after by agents in the room.
At the opposite end of the scale are the strong, confident bidders. They like to establish themselves in the room to all the other bidders, calling loudly and bidding up quickly.
“They’re saying ‘no-one else should try’,” says Patton. But, he adds, these confident people are usually also very clear when they’ve reached their price limit. “They’ve got a figure in mind, and that’s it. Others are more flexible, watching to see how things unfold,” he says.
Harcourts auctioneer Aaron Davis has a wee trick up his sleeve - mentally applying the DOPE test. That’s a psychological categorisation of people into bird types – doves, owls, peacocks and eagles. He then tailors his style accordingly, giving emotional doves lots of “lovely bid, you’re doing well” feedback, while playing to the strengths of alpha peacocks or eagles.
Again, he recommends that the smart bidders come to watch auctions to get the hang of how things work – and that’s even easier to do now that auctions are live-streamed from many auction rooms.
Marian Tolich, who auctions for both Barfoot & Thompson as well as a slew of charity events, says that these days people are far more educated as to how to bid, as they’ve seen more auctions both in real life and on television.
She suggests getting into the swing of bidding early on in the auction, rather than waiting and watching the property go past your limit. It’s low risk at the beginning, before the property has reached reserve.
And those last minute folks who first enter the bidding just as the “going, going, gone” hammer is coming down for the third and final time?
“You would have to have nerves of steel. That would be the more experienced bidder who can hold their nerve."
Tolich says it’s not something she’d ever recommend. She points out that auctioneers and spotters are watching people who bid, so a new left field bidder may not be noticed. “It’s not for the novice bidder. I wouldn’t do it."
Top tips to beat those auction stereotypes:
1. Ask for help.
The auctioneer, the agent for the property and fellow agents and spotters in the auction rooms are just as keen as you for the auction to be successful. If you’re sick with nerves or think you’ll fluff up your bidding, ask a friendly agent to stand with you during the bidding. They can keep you calm and collected, help you figure out whether that last $1000 is a stretch you won’t regret. Or, vice versa, help you figure out that you’ll kick yourself for missing out because of a few grand.
2. Go to a few auctions before you go to the one you plan to bid at.
This gives you a chance to see how things unfold without being emotionally involved in bidding. Patton says you’ll learn the language, see how the timing unfolds, understand the rhythm of both a fast auction and ones that get turned in.
3. Check out the room.
See who and how bidders gain a psychological edge over other bidders. And then ask, would that affect how you bid – or the successful of the price achieved.
4. Do some forward planning.
Have a strategy going into the auction – will you head fast to the limit in order to scare away others? Wait until the last minute? And while you’ve got an absolute limit, Tolich suggests you also ask yourself how you’d feel if you missed out by a mere $500 or $1000 on winning your house.
5. If you’re a couple, work out which one of you is going to bid.
Tolich says that increasingly first home buyers are bringing Mum and Dad, who are also helping with funding. She’s seen a few auctions where they’ll take over and add another $10,000 just to help their kids over the line.
6. Start bidding.
Tolich suggests that warm up bidding at the beginning, before the property has reached reserve and gone on the market, helps to build confidence.
7. Look at past sales
It’s been a buyers’ market, but now with not enough houses to meet demand, the balance is swinging back to sellers. Watch the pattern of bidding for the successful properties that have everything and bidders compete, compared to those which aren’t as a appealing and bidding stalls or it is taken off market.
