After years of successful bidding and buying houses, expert Amanda Gould, has some winning tips for bidding at a home auction...
Buyers agent Amanda Gould from Highspec Properties describes herself as a 'bespoke secret agent', after years of securing properties for clients all over Sydney. She's been awarded the prestigious REIA Award of Excellence, from the Real Estate Institute of Australia and here, she shares her tips and tricks to making sure you win at auction when it counts...
1. You’ve found your dream home, what homework should you do before the auction?
You should always do your due diligence prior to bidding. This entails detailed price research, going to other auctions to see what's selling and how auctions are paced, comparing properties that have sold in the area, reviewing the contract, hiring your own building & pest inspector if you are buying a house. If it's a unit study the strata report thoroughly.
2. Should you bid aggressively or sit back and wait?
Consistent bidding shows strength but very auction is different and has a different pace. Some are very slow to start and others bidders fire off straight away. There really is no rule of thumb. If it is a heated auction I try and let the heat go out of it before entering. If people are bidding with $5000 or $10,000 you could use a strong or knock-out bid to show strength of $20,000.
3. What's the most important thing to remember?
There are seven fail-safe tips I use every week:
- Attend auctions so you get on the ground experience of what is selling in the area and how much the houses are worth.
- Don’t use last years’ prices to compare with this year. There's been a huge shift in market, so look at current sales.
- Make sure you have a good solicitor/mortgage broker/conveyancer/strata or building inspector who can work quickly and are ready to go!
- Before the auction, make any amendments to the contract and take a copy with you to the auction
- Don’t get emotional – try and take a step back and assess everything.
- Have a budget and stick to it!
- Arrive early, there will be a lot of ‘sticky beaks’ there to check out the auction so find out who the serious contenders are.
- Go slow – it's not a race
- Be strong – and be careful not to bid against yourself.
Do you use body language to gauge the interest of bidders? If so, what should you look out for?
Yes! A lot of buyers give themselves away with their body language and the expressions on their faces. One of the main give aways that someone is running out of money is that they talk to the person they are with. It's a tell-tale sign they are short of cash!