With the Bayleys Big Call auction event locked into calendars for the first week in February, talk turns towards strategies to ensure motivated buyers are successful in the auction room on the day.
When “going, going, gone” resounds around the auction room and is emphasised with the fall of the hammer, an unconditional sale is confirmed.
Was the winning bidder lucky – or brave? We prefer to think they were well-prepared for auction room success.
Attending other auctions to get a feel for the process is great homework and gives you the chance to observe auction room protocol.
Bayleys’ national auction manager Daniel Coulson says feeling empowered as a bidder leads to auction room confidence and he stresses that if the property is exactly what you are after, then act like you intend to own it.
“As with all major purchases in life, you’ll need to do your homework on the property. Due diligence is important so get a builder’s report done for peace of mind, check out the LIM for the property and seek legal advice where required,” says Coulson.
“As an auction sale is unconditional, make sure you have your finance all sorted and ensure that you can provide 10 percent of the sale price as a deposit when the hammer falls.”
With those fundamentals in place, Coulson says it is important to build some contingencies into your bidding strategy.
“Sure, you will want to get the property for the best price you can – but at what level would you be devastated to miss out?
“So many times people have said to me ‘we wish we’d gone higher’ or ‘we could have paid a bit more’. You only get one shot so make it really count.”
Keep the bank on speed dial, have your broker in the auction room with you, have a bit of extra wiggle room from the bank of Mum and Dad – whatever it takes to give yourselves the best chance of success.
Coulson says auctioneers love the opening bid to come from the floor – so don’t be afraid to call out a starting figure when the auction commences.
“Bid clearly, confidently and, if you really want to send a message to the auction room, call out a bid in excess of the auctioneer’s increments. Show you are serious – it may just rattle the other bidders and give you an edge.”
Be decisive, optimistic – and realistic.
Bayleys’ Big Call auctions will hit a Bayleys auction room near you for one week from 1st February, 2017 - contact your local office to find out how you can be part of the hammer fall.