Any tips for buying a house at an auction?
Apr.15, 2010 in
House Buying Tips
I’m going to try to buy a house on Saturday at an auction. It’s my first time to bid at an auction and I was looking for some tips/advice from people who’ve done it before. Should I be agressive or sit quietly at the back and wait to outbid the last bidder??? What worked for you?
(I’m based in Australia – but I don’t think that makes a difference to the tips)
April 15th, 2010 at 11:13 am
All good answers so far. My advice:
Open the bidding to show that you’re in the game. Then sit back and wait until the others have knocked each other out. Then come back in and out-bid the last guy.
Set a limit before you get there and walk away if that limit is reached.
April 15th, 2010 at 11:13 am
Just sit back and wait for a reasonable price to come p. Think: If you are willing to pay it, then go for the price. If not, then forget it.
April 15th, 2010 at 11:13 am
I’m an habitual auction goer and have been for years. Remember, you goal is not just to be the high bidder, but rather to be the winning bidder at the lowest possible price. Heated competitive bidding quickly drives the price higher. If two bidders go head to head, let them go until one exhausts the other. When you step in, your opposition may be near quitting. Also, do everything you can to slow the bidding, unless at some point you want to convey strength, you can then bid firmly and with resolution. However, remember, you are driving YOUR price higher. You want to bid just high enough to beat the competition, no more! Try to eye the crowd and know who you are bidding against. This will protect you from shills. Remember the old saying: "How do you tell if an Auctioneer is lying? His lips are moving!" No protests please, I have auctioneers as friends, but, they are working for the seller, not for you. Good Luck. A auction house can be a fine opportunity. Set your price and don’t go higher!
April 15th, 2010 at 11:13 am
Come with a very solid top dollar. I would just sit back and let others battle it out. If there seems to be a lull in the bidding and the price is still below your top dollar, bid. If the price goes above your top, stop bidding.
It is easy to get caught up in the game of ‘winning’ the auction, so be careful. Also keep in mind that some auctions include a buyers premium (its usually 10% of the top bid around me) so calculate this fee into your available funds.