So you’re at an auction, and your heart is set on the beautiful home you are bidding for. How do you prepare yourself in the best possible way to win? Here is Harcourts National Auction Manager Aaron Davis with his top 4 tips and strategies on how to ensure you avoid any rookie mistakes.
Show strength at an auction right from the word go at the opening bidder offer with an unexpected sum to show confidence and rattle your competition. By starting with a random number, for example $937,500, you will gain respect from the auctioneer and your competition will feel rattled as they attempt to figure out the number on their own bidding plan. Time is money, and the more they are focussed on adding and subtracting your bid, the more time you have to win.
Bid at Random Amounts
Similar to the strategy above, you want to continue to bid with these (seemingly) random amounts. For example, rather than bidding to 940,000 and rounding to the nearest 10, throw in a bid of $25,00 on top of the $937,500. This will leave other bidders intimidated by your conviction, and distracted as they begin their calculations to find where the current bid is. Everyone is a comfortable at a simple, even number and can follow these bids relatively easily. Set yourself up for success by giving the auctioneer more than he is asking, and always landing on an uneven number.
Bid Before the Trial Close
It is common for bidders, especially in some cultures, to wait for the trial close before bidding. It’s easy to follow bids as they go trial close, bid, trial close, bid. This strategy doesn’t work as all other bidders are able to follow along and easily make their own bids alongside yours. As in the first tip, you want to show strength here. So instead of waiting for the auctioneer to call the trial close, throw him a bid of say $12,500. And then, just before the trial close, switch it up and call out an amended bid of $16,000. This will throw off your fellow bidders, and continue to have them thinking about numbers while you win the auction.
Jump to Your Number
It is uncanny how often people will turn up to an auction with the same pre approved amount, often $1,000,000. To combat this and give the illusion you have no limit, make the jump to your number from an unexpected distance. Many bidders will slowly creep up their pre approved amount. You want to, again, show confidence by jumping to the golden number with a poker face. For example, if the bid is at $991,000, take a look around the room and if you see there is some competition around, jump and call out the million with conviction and hope you can secure the property at that price.
See What the Auctioneer Sees
The number one rookie mistake that we see every single weekend at auction is the people giving the auctioneer a wide berth. Don’t make that same mistake of keeping your distance, get right up close to your auctioneer! See what he or she sees, and you will be able to make far more informed decisions in your bidding process.
So, there you have it, the top tips and strategies for bidding at auction to set yourself up to win from the one and only Aaron Davis. We look forward to seeing you bidding strong at an auction soon!