Auction Tips & Tricks For First Time Bidders

Buxton Auction

Auctions are a very popular way for people to sell their home, and because of their attractiveness to vendors, buyers need to be well versed and confident in attending and bidding at auctions.

While some people find auctions to be an exhilarating experience, others can feel like a bundle of nerves, especially when it is your first time bidding at auction; but no matter how experienced you are in the auction landscape, there are always ways you can improve your auction game.

We go through some tips and tricks that can help you best prepare for an auction, so you can bid confidently and (hopefully) come out of the auction as a new homeowner!

Buxton Auction Mentone

Have your finances sorted.

When the hammer slams down at the end of an auction, the top bidder is legally required to go through with the purchase of the property. The last thing you want is to lose your deposit because you didn’t have your finances sorted and could not go through with the sale of the property. So, first things first, get your finances sorted - being pre-approved for a loan is the way to go!

Attend other auctions.

Ever heard of the mere-exposure effect? The more exposed to auctions you are, the less daunting they become. Basically, you don’t want the first auction you attend to be the one you plan on bidding at. A great tip is to attend other auctions and become more exposed to the process, pace and language so you better understand the auction landscape. It is also a great way to keep track of the market if you attend auctions around the area where you intend on purchasing.

Buxton Auction Bentleigh

Know where to stand.

Many experienced bidders choose to stand alongside the auctioneer at the front. Not right next to them, but along the front where they are standing so you can see their outlook. This is a fantastic way for you to see what is going on and keep track of where bids are going so you can maintain the upper hand and don’t feel lost in the crowd.

Bid confidently.

This tip has a few sub sections, because while saying bid confidently is good advice, we want you to know what can make up a confident bid. 

  • Calling out bids with an assertive voice, or signalling your bid to the auctioneer clearly. You want to be direct and concise, so the auctioneer understands your bid and knows you are in contention!
  • Saying your bids in full. For example, if the bid is at $500,000, rather than saying $10,000, say $510,000. That way you know what you are bidding and don’t get lost in the increments.
  • Feel free to break away from the bid increments that the auctioneer is using. If they are going up in $20,000 increments but you want to bid $10,000, you can. Conversely, you can also bid higher, so don’t feel confined by the increases the auctioneer is encouraging. If your increment cannot be accepted, the auctioneer will let you know.
Buxton Auction Sandringham

Bring support with you.

There is no rule to say you are in an auction alone, so if you would feel more confident to stick to your guns and not overstretch yourself with family or friends supporting you, bring them along! You want to feel on top of your game at an auction, and having a support network with you can be a great plus.

No late bids.

Do not try to continue bidding once the auctioneer as called SOLD. Once the auctioneer has said SOLD the auction is officially over. You cannot come back and counteroffer with more. If you want to add a bid as the auction is coming to a close, the latest it is advised you do this is after the third and final call and before the auctioneer brings the hammer down. 

Property passed in? Be the last bidder.

If a property has been passed in this means that the auction has not met the reserve price or the vendor’s expectations. The highest bidder at that point is then given exclusive negotiation rights with the vendor. Because of this, it is advantageous to be the last person with their hand up before a property is passed in so you can continue negotiations with the agent and vendor outside of the constraints of the auction.

Want more tips and tricks before attending one of our auctions? Get in touch with your local Buxton office and speak to one of our experienced agents and auctioneers. You can see all the Buxton office locations by heading to the Buxton Offices section of our website.