Category: House & Home
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Sub category: Buy
16 November 2015

Bidding to win: Top tips for auction day

Auctions are a bit like an old western shootout. You’re in a face-off against other competitors vying for the same prize, and if you’re thinking, “this house ain’t big enough for the two of us”; you’re right, there can only be one winner. To help you be the last one standing, here’s all you need to know.

Register your intentions: It’s not good enough to just turn up. You need to confirm your intentions are pure and register as a bidder if you want to play ball. Make sure you bring your ID (license is fine) and a pen to do so.

Don’t give too much away: The agent is representing the seller and this is business. Ask them lots of questions, but keep things like your budget and emotions about the property close to your chest.

Dress for success: No need to go over the top and rock up in a tux (no one likes a show off), but you should go to some effort to look presentable at the auction. You want people to know you mean business; but also, it will make for a killer post-sale Instagram selfie #homeowner!

Where to stand: Nudge your way up to the front of the pack. This will ensure the agent can see you easily. You’ll be able to angle yourself to check out the body languages and facial expressions of the other bidders, and hopefully get a read on them.

The waiting game: The agent will open the auction by asking for an opening price. Wait until the property is ‘on the market’ before bidding. Don’t waste your energy bidding until the property has reached the reserve. Until then it’s not on the market and there is no point bidding for something that isn’t for sale.

How to bid: It’s all about swagger; make sure the agent knows you’re there. When the bid is a big one, call out the figure in full numbers (i.e. three hundred and one thousand, not 301K). This not only sounds impressive, but it gives other bidders the impression that you’re confident with the price you’re putting forward, and hopefully scares them off raising you again.

What to do if the property ‘passes in’ (doesn’t meet the reserve): Then it’s time to snag yourself a bargain. The agent will seek more bids in attempt to save the sale, with the closest to the reserve getting the opportunity to negotiate with the seller.

The buddy system: If you don’t trust yourself not to get hot headed and caught up in the moment, take a friend to the auction. It’s your friend’s job to watch over you, keep you accountable and make sure you don’t let your emotions get the better of you when it comes to raising your price ceiling. In the same vein, it can be a rough blow to your house hunting aspirations to lose an auction. It’s your buddy’s job to keep the optimism high and make sure you’re laser focused on the next one. Onwards and upwards!

Come armed with a deposit: Unlike a private sale, there is no cooling-off period when you win at an auction and you’ll need to handover the deposit right then and there if you win. If you feel uncomfortable carrying around a cheque of such large value, you can use the ING Direct app to transfer the money in a pinch.

Heading to an auction this weekend?  To get fully prepared, download the Spring 2015 Buyers Guide or call one of our Home Loan specialists on 1800 100 258.

The information is current as at publication. Any advice on this website does not take into account your objectives, financial situation or needs and you should consider whether it is appropriate for you. Deposit products, savings products, credit card and home loan products are issued by ING, a business name of ING Bank (Australia) Limited ABN 24 000 893 292, AFSL and Australian Credit Licence 229823. ING Living Super (which is part of the ING Superannuation Fund ABN 13 355 603 448) is issued by Diversa Trustees Limited ABN 49 006 421 638, AFSL 235153 RSE L0000635. The insurance cover offered by ING Living Super is provided by Metlife Insurance Limited ABN 75 004 274 882, AFSL 238096. ING Home and Contents Insurance is issued by Auto & General Insurance Company Limited (AGIC) ABN 42 111 586 353 AFSL Licence No 285571 as insurer. It is distributed by Auto & General Services Pty Ltd (AGS) ABN 61 003 617 909 AFSL 241411 and by ING as an Authorised Representative AR 1247634 of AGS. All applications for credit are subject to ING's credit approval criteria, and fees and charges apply. You should consider the relevant Product Disclosure Statement, Terms and Conditions, Fees and Limits Schedule, Financial Services Guide, Key Facts Sheet and Credit Guide available at ing.com.au when deciding whether to acquire, or to continue to hold, a product. Before interacting with us via our social media platforms, please take a minute to familiarise yourself with our Social Media User Terms https://www.ing.com.au/pdf/Social_Media_User_Terms.pdf.

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