“Should I Be Bidding Now?”

There are some who show absolute confidence and poise with nothing appearing to throw them or ruffle their determined feathers.

In reality though, I’ve rarely come across people whose first attempts to bid at auction didn’t come with sweaty palms, nervous mannerisms and an overwhelming mix of stress, confusion and excitement. 

However bidding at auction can actually be enjoyable… by about your tenth event! For this reason, first-time bidders make mistakes that will upset their strategy and may result in missing out on what should have been an excellent first buy. 

Here are five beginner auction errors and how to fix them. 

1.  Failing to prepare “By failing to prepare you are preparing to fail” Benjamin Franklin. This particularly applies to bidding at an auction. The pressure of competition can make the average person behave strangely. If you’re one of the final bidders you’ll feel an adrenaline rush and quickened heart rate together with an internal monologue that’s screaming “What do I do now?!” That is not the time to make the decision about your absolute upper price limit. Well before the auctioneer calls everyone together, smart buyers know at what point they are going to pull out – absolutely, positively and without regret. Do your sums well in advance for every property you’re interested in. Know what you can afford to borrow and do your research as to what the specific property is worth. No later than a day before the auction, you (and any significant other) must have a comprehensive discussion about what you’re prepared to pay. Take your time and, if this is absolutely the home or investment for you, find your absolute limit – it’s that figure where literally a dollar more is a dollar too much. Also accept that you might be outbid – that’s OK. There will be other properties in the future and each auction is a learning experience. 

2.  Not knowing your State/Territories Legislation Be knowledgeable about your state or territory’s rules relating to auctions. For example, arriving late on the day and raising your hand to bid as you close the car door is not on. While bidders don’t need to register in Victoria they do in many states, including New South Wales and that includes producing identification and other details. Also, know your State’s ‘cooling off’ rules. As proceedings approach the intense finale, under-educated bidders can become more stressed by unfolding events. How will you know when the property has reached the reserve? Will the auctioneer go inside to talk to the vendors? Is the property “on the market”? Take some time to learn about what happens if the property passes in. Did you know in many jurisdictions, the under bidder doesn’t not automatically have the first right of refusal? Also be aware of the seller’s specific requirements too. What do they expect in terms of a deposit? Do they want an extended settlement period? Here are two good ways of approaching this: Firstly, attend plenty of auctions before you bid so you can see how different scenarios play out. Secondly, talk to agents and auctioneers, particularly those selling your desired property. They will happily answer questions about their auction style and the particulars for the property you like 

3.  Bidding Strategy is Complicated When the moment arrives it’s best to be front and centre and make yourself be heard. You must ensure the auctioneer knows you’re a real contender in the sale and you’re there to win! There are also some who believe the best strategy is to hang back and make a “knockout bid” towards the end. It’s a great strategy but very dangerous for novice bidders. It gives other bidders a chance to build their confidence during proceedings and your “knockout” might actually be a vast overpayment for the holding. Also, think about whether you want to open the bidding. If so, what will you offer? Most sellers expect a first offer below reserve, but come in too low and you might be greeted by a withering comment from the auctioneer that will zap your confidence. Just like knowing where you’ll stop, have a think about when you’ll likely enter the fray too. You can see that the strategy of bidding is a complicated one. 

4.  Believing the auctioneer has the balance of power The fact it’s the auctioneer and selling agent who are most under pressure at an auction may surprise first-time bidders. The auctioneer is trying to get the highest possible price for the vendor and that means they’re actually beholden to the bidders at the auction. If agents “rush” you for quick decisions or push for a fast counter bid, take a moment to think. If they believe you may make another bid, they’ll wait for you to decide. This is also the time to employ your well-practised poker face. Try to give nothing away if you’re stressed. Relax and let them feel the pressure. While you should be respectful of the process, telling an agent you’d like a moment to gather your thoughts is fair enough too. Take your own pace, not the auctioneers. 

5.  Compliance on increments Auctioneers can request an increase in bidding increments or deny smaller ones but that doesn’t mean you have to comply especially towards the end of the auction. Auctions can come down to miniscule margins. I’ve seen events run at $100 bids – it’s excruciating for the crowd but could mean savings in the thousand for the eventual buyer. Auctioneers will try and dictate your bid margin – they may knock back margins that are too low in the early stages of an auction – but they’ll always come back once bidder numbers start to thin. Don’t succumb to the auctioneer’s suggestion of a ‘knockout’ bid. During proceedings there may be times where an increased bid margin conveys deeper pockets but this is better kept to more experienced bidders. Everyone, especially your competition, has their limits and the best strategy is to be one step ahead when the hammer falls. 

In Summary Bidding at auction may seem daunting to novice bidders but experience brings confidence. Unfortunately, in the meantime you may have missed out on some excellent properties due to that lack of experience. There is a simple solution. We at ​Your Australian Property represent you, the buyer, at auction. We provide an auction bidding service for buyers and this service has been designed to save you significant amounts of money on the purchase price and take the emotion out of the property bidding process.

Have a look at our expert Auction Bidding Service. Our professional auction bidders will fully plan and execute the bidding strategy on your behalf, giving you an enviable edge over your competitors – providing you with peace of mind. We have 30 plus years’ experience of the Melbourne property market and use innovative strategies to secure the winning bid at auction – we push boundaries so your interests always come first and exceptional results follow. 

Why not draw on our expertise so that your biggest worry on auction day is what brand of champagne to crack open in celebration of a successful outcome. 

Why Use a Buyer's Agent in Melbourne?

Your Australian Property Buyers Agents lives and breathes property and knows the Melbourne Property Market! We at Your Australian Property Buyers Agents offer comprehensive end-to-end support from identifying and analysing your selected properties to dealing with selling agents, attending property inspections, purchase negotiations and / or auction bidding on your behalf. 

Our Independent Buyer’s Agents in Melbourne, will take the time to understand your situation and work out what your individual needs, specific requirements and property goals are, so we can begin searching for your next property. 

To get in touch with us today, please complete our Enquiry Form so we can discuss your objectives and outline our process in clear and simple terms.

What our Clients are Saying about Your Australian Property Buyers Agents

Your Australian Property Buyers Agents is a five-star rated independent boutique Buyer’s Agency in Melbourne. Our success comes from prioritising our clients' unique needs first and consistently delivering exceptional results.​ We promise to be responsive and to truly listen to what our clients need. We're surrounded by noise in the property market – Our goal is to cut through it.

From the CBD to Melbourne’s outer suburbs, Your Australian Property Buyers Agents helps Melbourne home buyers and property investors secure the right property with independent advice, proven strategy and expert negotiation.

We don’t sell property. We don’t answer to developers. We work for you and only you.

With over 30 years of real estate industry expertise, we know what it takes to buy property seamlessly. Patience is key, but never at the compromise of confidence and our clients’ end game. We’re professional in every facet of our work, dealing with our clients with the utmost integrity and honesty.

When clients engage Your Australian Property Buyers Agents, they can expect Buyer’s Agents that are proactive and passionate. Combining a hard work ethic with passion and attention to detail, we help clients achieve their property goals with ease.

Next Step

If you’re Serious about Purchasing the Right Property at the Right Price, then Working with an Expert Buyer’s Agents is the Smartest Purchasing Strategy There Is!

Simply fill out the Enquiry Form below to get Started.

Smart Negotiating Tips from a Buyer’s Agent who Knows…

The good news is you don’t have to be a talented negotiator to get a great deal on your next investment property. You just need to learn a few tricks from the pros. So how do buyer’s agents negotiate on a deal?

Understanding Vendors

It starts with having a deep understanding of what the vendor actually wants. Vendors are driven by different motives. Some are driven by price but they may have different requirements or desires. Establishing a good relationship with the sales agent will help establish the vendor’s needs. It will also help establish how the vendor wants to sell his/her property, by private sale, auction or Off-Market.

Having Solid Market Knowledge 

Having solid market knowledge is important. You need to know the area that you’re looking to buy in intimately. You should identify at least five recent comparable sales. This eliminates some inconsistencies such as an unusually high selling price because a purchaser became too emotional.

Study comparable sales 

Do your homework to show sales agents you’re serious. That way you’re more likely to extract information from them. If you approach agents with comparable sales on hand and an understanding of demand in the area for that type of property, you will be in a position to talk with them about which recent sales are reliable, comparable sales. Agents will generally chat more openly about their honest opinion when the buyer has educated themselves.

Cultivate goodwill with the agent 

While sales agents do work for the vendor, don’t underestimate the power of being genuinely nice towards them. Treating the sales agent politely might get you important information about the vendor’s situation and their expectations. The sales agent may be willing to tell you what the vendor’s value in terms of the timing of the transaction, their style of communication, desired terms and any extra things you can do to enable a smoother transition for them. Price should be the last item you discuss.

Establish the agent’s rules before negotiating 

To help strengthen your position, you also need to understand how the agent will handle offers and counter offers. Find out if they will call the vendor immediately, sign up the offer or facilitate a counter-offer. Will they call other buyers before selling it? And if so, how will they deal with competing buyers? Try to establish if the negotiation will be fairly handled so that you don’t show your cards and get slapped in the face with rejection, or worse still, gazumped or played off against other buyers.

Identify some potential weaknesses 

With any potential purchase always have at least two negotiation points up your sleeve. These points should be issues with the property or the location (e.g. needs re-wiring or new roof, busy road, opposite a noisy school). You can use these to show the sales agent that while you’re interested in the property, you know that these issues with the property should make the price discountable as a result. 

Understand the vendor’s position 

Try to find out what the vendor’s motivation is for selling. Are they time-restricted and have to sell or not? Sometimes offering a shorter settlement period can get you a few thousand dollars off the deal. Alternatively the Vendor may want a really long settlement. Paying a deposit on the day could also close a deal. That’s why you need to extract as much information as you can from the sales agent to know how to present the best offer.

Make sure your offer is clear 

Make a clear offer and then just leave it. If you follow up too soon, ask where the offer is at and what the next steps are, indicate to the agent that you may have more money up your sleeve. Don’t say the offer is your best or last unless it really is. Agents can’t be held accountable for selling at a higher price to a competing buyer if you have told them it’s your last offer.

Tell the agent about your Plan B  

By this stage you know your requirements, are actively looking to buy and should have a Plan B property you are prepared to pursue if this purchase isn’t successful. If you’ve built up a good relationship with the sales agent he/she will know that you aren’t entirely emotional and are motivated to buy so they will feel impelled to keep things moving for you. An agent doesn’t want to lose their leading buyer. Nothing feels worse than telling a vendor that the buyer who made a reasonable offer is now out of the market. 

Why Use a Buyer's Agent in Melbourne?

Your Australian Property Buyers Agents lives and breathes property and knows the Melbourne Property Market! We at Your Australian Property Buyers Agents offer comprehensive end-to-end support from identifying and analysing your selected properties to dealing with selling agents, attending property inspections, purchase negotiations and / or auction bidding on your behalf. 

Our Independent Buyer’s Agents in Melbourne, will take the time to understand your situation and work out what your individual needs, specific requirements and property goals are, so we can begin searching for your next property. 

To get in touch with us today, please complete our Enquiry Form so we can discuss your objectives and outline our process in clear and simple terms.

What our Clients are Saying about Your Australian Property Buyers Agents

Your Australian Property Buyers Agents is a five-star rated independent boutique Buyer’s Agency in Melbourne. Our success comes from prioritising our clients' unique needs first and consistently delivering exceptional results.​ We promise to be responsive and to truly listen to what our clients need. We're surrounded by noise in the property market – Our goal is to cut through it.

From the CBD to Melbourne’s outer suburbs, Your Australian Property Buyers Agents helps Melbourne home buyers and property investors secure the right property with independent advice, proven strategy and expert negotiation.

We don’t sell property. We don’t answer to developers. We work for you and only you.

With over 30 years of real estate industry expertise, we know what it takes to buy property seamlessly. Patience is key, but never at the compromise of confidence and our clients’ end game. We’re professional in every facet of our work, dealing with our clients with the utmost integrity and honesty.

When clients engage Your Australian Property Buyers Agents, they can expect Buyer’s Agents that are proactive and passionate. Combining a hard work ethic with passion and attention to detail, we help clients achieve their property goals with ease.

Next Step

If you’re Serious about Purchasing the Right Property at the Right Price, then Working with an Expert Buyer’s Agents is the Smartest Purchasing Strategy There Is!

Simply fill out the Enquiry Form below to get Started.

Why Use a Buyer's Agent in Melbourne?

Your Australian Property Buyers Agents lives and breathes property and knows the Melbourne Property Market! We at Your Australian Property Buyers Agents offer comprehensive end-to-end support from identifying and analysing your selected properties to dealing with selling agents, attending property inspections, purchase negotiations and / or auction bidding on your behalf. 

Our Independent Buyer’s Agents in Melbourne, will take the time to understand your situation and work out what your individual needs, specific requirements and property goals are, so we can begin searching for your next property. 

To get in touch with us today, please complete our Enquiry Form so we can discuss your objectives and outline our process in clear and simple terms.

What our Clients are Saying about Your Australian Property Buyers Agents

Your Australian Property Buyers Agents is a five-star rated independent boutique Buyer’s Agency in Melbourne. Our success comes from prioritising our clients' unique needs first and consistently delivering exceptional results.​ We promise to be responsive and to truly listen to what our clients need. We're surrounded by noise in the property market – Our goal is to cut through it.

From the CBD to Melbourne’s outer suburbs, Your Australian Property Buyers Agents helps Melbourne home buyers and property investors secure the right property with independent advice, proven strategy and expert negotiation.

We don’t sell property. We don’t answer to developers. We work for you and only you.

With over 30 years of real estate industry expertise, we know what it takes to buy property seamlessly. Patience is key, but never at the compromise of confidence and our clients’ end game. We’re professional in every facet of our work, dealing with our clients with the utmost integrity and honesty.

When clients engage Your Australian Property Buyers Agents, they can expect Buyer’s Agents that are proactive and passionate. Combining a hard work ethic with passion and attention to detail, we help clients achieve their property goals with ease.

Next Step

If you’re Serious about Purchasing the Right Property at the Right Price, then Working with an Expert Buyer’s Agents is the Smartest Purchasing Strategy There Is!

Simply fill out the Enquiry Form below to get Started.