In this Australian Property Podcast episode, Chris and Amy teach you how to win at auction. Basically, you just need to have an unlimited budget (just joking). Ultimately, the buyer with the most money often wins, but not always.
They explore:
The rules around auctions
- Set rules (unlike private sales)
- No cooling off (unless bought prior)
- Reserve price
- Pass ins
- Transparent
- They don’t always go ‘crazy’
- Quote ranges
- Auctions are about price, terms are prior agreed
Auction tips
- Biggest tip: budget setting prior
- Do all due diligence asap beforehand
- Bidding with confidence
- Don’t overthink strategy
- Being the first bidder
- Bidding increments
- Have a plan for a pass in situation
Buying prior to auction
- Strategic: moving swiftly and taking others by surprise, property likely towards or over top of budget so nothing to lose (put you out of misery sooner!), if you have 2 properties and your preferred one goes to auction second etc
- Can be tricky: risk to vendor/agent, cooling off
- Buy prior price versus sell at auction price
- Similar to private sale episode advice:
- Understand buy prior price, sometimes space to negotiate
- Understand the process
- Only go down this path if you’re serious
