Tips on how to successfully bid at auction

You have spent months researching the property market, scouting for that perfect new home – and now it’s time to make your move. But how do you put your best foot forward come auction day?

Auctioneer Hugh Rainger offers some tips on how to successfully bid at auction and give yourself the best opportunity of securing that perfect new home.

Be brave

When it comes to opening up the bidding, somebody has to do it.

Hugh says it’s not wise to sit back and wait because you may miss an opportunity to create rapport with the auctioneer and build the momentum of the auction from the outset.

“It’s a natural reaction for people to want to sit on their hands, but what they don’t understand is that the auctioneer is waiting for someone to bid – it’s as awkward as it gets,” he says. “Go in with a plan.

“If you put your hand up, put in a decent offer and get the auction going, you will get the auctioneer’s respect and him on side from the start. Whilst it might only be 1% of the situation, it’s 1% more than you’ve got over everybody else.”

Be confident

“There’s nothing to be gained by playing coy. There’s nothing to be gained by being cute,” Hugh says. “The best strategy is to stay on the front foot.

“I’ve seen people, even recently, not bid. The auction is underway and they’re still not bidding. When you pass the property in and start negotiations with the highest bidder, these other people come out of the woodwork and say they would have paid that and then some. But they had the chance, didn’t put their hand up and missed the boat.”

Set your budget with some wiggle room

It is smart to set (and stick to) a budget when it comes to bidding at auction, but Hugh says it’s smarter to factor in a buffer so you don’t let your dream home escape your clutches.

“Absolutely, go into the scenario with a clear figure in mind,” he says. “Everyone has a figure in mind that they want to spend, but don’t just have that as your hard and fast figure.

“If your limit was $200,000 but you knew you could buy the property for $204,000, I guarantee that 99% of the population would go higher than your budget, so factor that into your sums.”

Just bid

If you’ve done your due diligence and are a registered bidder, do what you’ve come to do – bid.

Many people feel hesitant, worried and uncomfortable about bidding at auction, but Hugh says it does get easier with practice.

“An auction is an unnatural circumstance for the average human being. It’s nerve-wracking for the best of operators, so I try and make the environment as calm and as easy as I possibly can,” he says.

“At the end of the day, the more bidding you do, the more comfortable you will be.”

Don’t overthink it

“One of the best pieces of advice is don’t overthink it. Don’t overcomplicate it. I think people make bidding at auction a lot more difficult than they need to just because nerves get the better of them,” Hugh says.

“Leave emotion at the door to a certain extent, wherever you can. But we also appreciate that this is emotional and you are attached to the process.”