In a slowing market, auctions can be the ideal hunting ground for buyers seeking bargains, but many could be ruining their chances of getting a great deal - by remaining silent.
Those who register to bid at auction stand a strong chance of coming up against only one rival bidder or in some cases would be the only registered bidder, putting them in a commanding position to negotiate prices.
Conversely, those who stand on the sidelines waiting for the home to pass in — a strategy that has been getting increasingly popular — are at a disadvantage as they are often not given the same access to vendors as those who registered to bid.
Buyers who want to capitalise on the improved buying conditions needed to be strategic and come to auction well prepared.
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The current lending environment can make it difficult for many buyers to get loans which means “cashed-up” buyers who have their financing in order can pick up a potential bargain.
Buying at auction is the most transparent way to get into the market - you can see your competition and read what they are doing from not only the bids they make but also their body language.
Calling the full price rather than rise amount and opt for odd numbers - it can throw other bidders off.
"On the market” and “reserve” are critical terms to know.
The latter is the minimum price the vendors were willing to accept in order to sell by auction, while an auctioneer’s call that a home was “on the market” meant the reserve price had been reached and the property could now sell to the highest bid.
Don’t be scared to ask the question, ‘Is it on the market?’ Once it’s on the market, you’re playing for keeps.
