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FIVE WINNING AUCTION TIPS FOR BUYERS
We've all experienced that nerve-racking feeling. Whether we're bidding at a home auction, a local estate auction or an online auction, sometimes the pressure pushes us outside of our comfort zone and our nerves get the better of us.
As an auctioneer at The Auction Barn, I’ve observed first-hand the strategies and bidders who have the most consistent success – not just in terms of winning at an auction, but in terms of feeling confident about their decisions and positive about their experience regardless of the outcome.
So, I’ve put together FIVE WINNING AUCTION TIPS FOR BUYERS to help get you on the winning track.
Tip #1: Research in Advance
In a hot market, it’s risky to go in without all the information. Do your research. What are current market valuations? What results have been achieved at previous auctions? What are the factors influencing your decision? Are you turning a blind eye to defects or downsides to the item or property you are bidding on? Research will help you to avoid making impulsive, emotion-driven decisions on the day.
Tip #2: Attend Auctions as an Observer
Attend auctions as an observer. Like anything, success at auctions is all about exposure and practice. When I attended my first home auction, I wanted the property so badly that the auctioneer could sense it. Despite having a background in auctioning antiques and collectables, I was a newbie to bidding on homes and this gave the auctioneer more control over the situation. Previous exposure to auctions will help you to master your body's natural chemical reactions when you're under pressure. After a few trial runs, you will find it easier to remain cool, calm, and collected when it matters.
Tip #3: Set Yourself a Budget
Budget is key. Always remember, there will be another property or another collectable that will come up in the future. Many auctions are driven up far beyond market value by competition on the day that is motivated by emotion rather than sense (hence why so many homes are sold at auction!). It may be that you feel it is worth paying over the odds, but knowing your budget based on your market research and an honest assessment of your finances will save you paying more than you should.
Tip #4: Bid with Confidence
If you’ve followed tips #1, #2 and #3, then go for it! Bid with confidence – take no prisoners! Bid confidently, clearly & quickly. Remember, you don’t have to follow the auctioneer’s bid increments. If you're in a heated bidding war, a cheeky bid jump may help you. You are the buyer, and you have more control than you think! Jump the bid to strike fear in your opposition.
Tip #5: Let it Go
Sometimes we don’t win and it’s devastating. Especially if we’re in love with a property or item, but we just couldn’t go high enough. If the day turns out as a loss, yes you can wallow - but not for too long! The ability to let go is a superpower, especially in the auction world! Go back on the hunt, research new opportunities & start over. Tomorrow is a new day.
If you found these tips helpful, follow us on Facebook or Instagram. To bid at The Auction Barn, sign up for a profile here and start practising! Or, for more information related to buying with us directly, read more here.