Tips on Winning Auctions!Published on October 17 by Sean Murphy
Melbourne’s auctions are going crazy. Agents are getting huge groups through properties from all walks of life, from first home buyers to investors, things are super competitive. There is simply not enough stock to service the demand. So with more people out hunting for their first or next property, we need to be more educated, and a little more tactful with our approach to auctions.
The two major issues we’re going to cover are:
- How to figure out what a property is really going to go for?
- How you should bid on the day, early, late, aggressive?
How frustrating can it be to travel around your favourite suburbs all weekend checking out what’s on offer, walking through the homes you like with 40 other people and trying to work out what it is going to fetch when the hammer drops?
We are seeing more and more properties advertised for low ball prices to attract potential buyers and then come auction day, it goes for $150,000 above the advertised price. Surely the agent knew it was going to go for more than the advertised price.
So in order to educate yourself on how to judge this, we spoke with a few of our referral partners to get the inside scoop.
- Start your research early, even if you’re not actively buying yet, but you know you will be in 3 months, get out there and look around.
- Attend the open houses for properties with similar attributes (bedrooms/Bathrooms/living areas/decking/yard space etc.) then if you have the time, attend those auctions to profile what these properties are going for, who are the buyers, and what were they advertised for.
- Request a property report from the real estate agent OR BELOW, get some real time statistics about the area, the property, and the trends. All good agents should offer you this.
Next we discussed the most common question when it comes to auctions:
How do I bid at an Auction!?
We spoke with Aaron Leask, Auctioneer and Director of Hodges Real Estate in Ascot Vale, Aaron provided the following tips on bidding at an auction.
He started with recommending you have a plan, “Set your limit before the day, try and stick to that, try not to bid with too much emotion or get sucked into the competitive nature of an auction, it is a business transaction at the end of the day”
Aarong then went on to say “Be assertive with your bidding at an auction, that’s the main thing, a lot of buyers are cagey and wont bid until the property is on the market, I think that if you’re there to bid you’re there to buy”……
To see the entire interview, CLICK HERE or on the video below and make sure you have the best chance of winning your next auction.
If you are attending an auction, ensure you get in touch and get your pre-approval in place BEFORE attending the auction, this ensures you know your budget, and wont risk your entire deposit!
Happy bidding to all of our MMF friends getting active this spring.