Win at Auction, without overpaying

Property auctions can be an exhilarating and potentially rewarding way to purchase a home, but more often than not, families are walking away disappointed at having missed out on buying the perfect home.

I have over 30 years’ experience in purchasing property and in that time, I have perfected an Auction strategy that can help you navigate the competitive world of property auctions and come out on top.

Win at Auction without paying too much

1. Research is Key:

Start by understanding the auction process itself, including registration requirements, bidding rules, and fees.

Next, research the property details to assess potential risks or issues and evaluate condition reports, market trends and comparable property values.

2. Set a Budget, at an Odd Maximum:

Property auctions are intense and emotionally charged environments, making it easy to get caught up in the heat of bidding wars.

To avoid overextending yourself financially, set your maximum limit based on your budget and the property's true market value, which you have already determined through your research on local market and comparable sales.

Set an odd maximum bid that ends with an odd number (e.g., $911,000 instead of $910,000) can give you a slight advantage. Bidders often round their bids to the nearest hundred or thousand, so having an odd bid can help you outbid them by a small margin.

3. Attend Auctions as an Observer:

Attend as many auctions as you can before participating in one, observe the pace, rhythm, and tactics used by successful bidders, and apply this to your own winning strategy.

4. Get Pre-Approval for Financing:

Have a clear idea of your borrowing capacity to bid confidently during the auction. Auctions usually require immediate deposits and a quick settlement period, so having your financing arranged in advance will give you a competitive edge.

Remember to account for additional costs, such as legal fees, moving and renovation expenses.

5. Due Diligence is a Must:

Review the property's Building and Pest inspections, legal documents, title history, upcoming local developments/changes and any potential restrictions.

Ensure you have a comprehensive understanding of the risks associated with the property and suburb you’re buying into.

6. Develop a Bidding Strategy:

Before bidding begins, ensure you’re dressed appropriately to enhance your credibility and project a professional unbeatable image on the day. Stand tall, maintain good posture and avoid restless movement as they indicate nervousness and lack of confidence.

Establish and maintain eye contact with the auctioneer and other bidders as it demonstrates your seriousness and shows that you are actively involved in the auction process.

Observe other bidders closely to identify patterns and determine their level of interest. Are they bidding aggressively or hesitantly? Gauge their determination and adjust your bidding strategy accordingly

Once the auction has commenced, start with a strong opening bid to discourage other bidders.

When placing your bids, do so confidently and with a clear, audible voice. This projects authority and signals to other bidders that you are determined to secure the property.

Bid in increments that end with psychological price points. Instead of bidding $950,000, bid $951,000, this strategy appears more precise and calculated, intimidating other bidders who may hesitate to go beyond a round number.

Instead of making small incremental bids, intersperse your bidding rhythm with larger and more decisive bids, demonstrating your confidence and assertiveness, potentially deterring competitors who are bidding conservatively.

7. Stay Calm and Confident:

During the auction, keep neutral facial expressions and control your breathing to avoid revealing your excitement and intentions.

Projecting an air of confidence and composure can give you a psychological advantage over your competitors.

Make only strategic bids based on your research and predetermined strategy and avoid reacting emotionally or getting caught up in competitive back-and-forth bidding.

While some bidders will purchase emotionally for their dream home, often the long-term financial consequences outweigh the high of purchasing on auction day.

Use the above tips to give you a competitive edge on Auction day, but keep in mind, it is most important to win at the right auction, and ensure you don’t overpay on your property.

Call Search Find Invest for a free no obligation consultation with Frank Russo 1300 132 970 or email at This email address is being protected from spambots. You need JavaScript enabled to view it.