What are the ways to secure a win at an auction?
One of the biggest milestones we’ll celebrate in this life is to purchase our very first home. Having our own property is a big deal so we must make sure that we take calculated steps towards getting our very first.
Buying your first home can be daunting especially if you plan to go the auction route. The process itself can be a bit stressful if you’re not prepared enough. Going against other people in a bidding process is stressful. But with proper guidance, you can ace it and hopefully win the auction.
Do some research and ask friends and family members who have been involved in auctions before. Get their inputs, explore your options, and pick several houses that you can choose from.
Winning at a real estate auction depends on a lot of factors. We came up with some auction tips to help you out. These auction tips will help you gain an edge over other people bidding for the property you want to buy.
Wait to place your bids
To get an idea of how much your competitors’ budgets are, wait until they make their bids first. This way, you’ll have an idea of how much people can afford and you will know when to join the price game.
The first auction you go to won’t be a guaranteed success. It will take a few engagements before you win your own home within your budget. Like in any game of chance, it’s a good idea not to show your hand in advance.
Make your bids a strong figure that reflects the market value.
Decide on strong figures once you bid. Make sure that your bids reflect the property’s value in the market so that it eliminates low bidders immediately.
Add increments by the thousands because if you go for lower, like $500, almost anybody can add the same amount to their budget just to get back in the game.
Watch: How to bid at an auction
Go in with a counterbid quickly and confidently
This will let the other bidders know you mean business and that you’re serious about the property. Also, this will give you an idea of who your biggest competitors are in the auction.
Talk with the real estate agent
Have a discussion with a real estate agent. It will give them an idea that you’re a serious bidder. This will also give you an idea of how the process will go as the agent guides you.
There were instances when after every auction, there are people who get upset that the property was sold for a certain amount. They say things like “I could have paid higher had I known…” the way to bridge this gap is to talk to the real estate agent.
Set a budget and stick to it
It always helps to set a budget and how far you are willing to extend that before you go to an auction. A budget is a very important consideration for any property purchase. In case you don’t end up with the home of your choice during the first auction, there will be time to go around and attend another one that will fit your budget.
It’s rare that we get to win on our first auction so in case you get outbid, don’t despair. Like with any investment, it takes practice to get the hang of it. Also, look at it this way: failed auctions will lead you to the ideal home that best fits your needs and your budget.
Ready to attend and win an auction? Watch out for our auction schedules. See you there!