Keeping a cool head at the auction
IT is understandable for first time home buyers to feel anxious, but solid preparation and knowledge of the process will help you buy the house of your dreams. With all the attendant excitement, how can you ensure you keep your calm below are some tips. Head in with your documents pre-prepared
By now, you should have looked at your contract of sale, sought out legal advice, obtained a building and pest inspection (and any of your other checks and balances), undertaken any other required due diligence and prepared a cheque or other way to pay your deposit. There’s little time to do this on the day, so having all these things preprepared will go a long way to stop the last minute “morning before” rush.
Engage an expert
If you are concerned about bidding, then it may be worth contacting a buyer’s agent to assist you in the bidding process. Alternatively, you may decide that bringing a “dev- il’s advocate” in the form of a trusted mentor, friend or acquaintance can assist you at auction. If you become more bullish under pressure, this may assist you in maintaining your restraint with bids.
Gauge the crowd ahead of time
Head to the auction early and gauge the crowd and the ‘vibe’ ahead of the start.
If you’re heading in late you will be unable to weigh up your competition and you may encounter extra stress as a result.
This will help you think strategy and determine whether or not you may be contending against another buyer.
Position yourself thoughtfully
When at the auction, don’t forget to position yourself carefully in preparation to bid.
Property Observer editor at large Jonathan Chancellor recommends that you never sit in the front row, or with your back to the crowd.
“Take a corner position so you can survey all your competition,” Chancellor advises.
Know your highest price
Before bidding, you should have determined the highest price you’re willing – and can afford –– to pay. If you’ve made a thoughtful decision ahead of time, then this should enable you to set your limit on the day.
If you do not make a researched judgment on the price then you may face overpaying in the heat of the moment.
While it is debatable as to whether you should allow yourself to push a “few thousand” over your set price, it’s advisable that you determine to be comfortable to allow the property to go if it sails past upper limit
Step back Be confident and polite when bidding, but if you find yourself getting caught up or confused then it’s time to quickly re-assess. Step back, remind yourself of the value of the property and ensure you don’t get swept up in the emotion of the day.
Similarly, if you find yourself bidding furiously against another buyer it is worth reminding yourself that you are both causing the other to pay more. Be alert and know when to show restraint.
Before bidding, you should have determined the highest price you’re willing – and can afford – to pay.