Bid your way into the big leagues with this fail safe guide
If you’ve never been to a property auction, then they can seem pretty daunting. There’s a whole lot of choice in a high-pressure situation, how are you supposed to handle this? We’ve put together a handy guide on how to secure a successful investment at your next auction, whether it is an old property, brand-new or a challenging project you’re looking to undertake.
Ease yourself in
If you’re new to the property auction game, then the best thing to do is attend a few sales as a spectator. As the atmosphere of an auction room can be fairly intimidating to those who aren’t used to it, just going along to watch can make things seem a lot easier. You’ll get a better understanding of how they work, learn how bidding unfolds, how prices rise and how you might choose to bid.
Do your research
Before you go to the auction, have a look online and see what properties are going to be there. If you have an idea of what you want, try to narrow it down so you know exactly what you’re bidding for on the day. Make sure you look at the guide price, research market value and potential rental return, and be prepared to gain quotes and timescales so you’re not left in the lurch.
Stick to your guns
Once you’ve set a maximum price that you’re willing to pay, make sure you try and stick to it. Although the auction room can be an exciting place, try not to get carried away with the electric atmosphere, and don’t be tempted to exceed your pre-set budget. This way, when you make a purchase, you can feel confident in the knowledge that you’ll have enough funds to cover all of the expenses.
Take your seats
Where you sit in the auction room is very important. The three key things are: be prompt, be visible and be seen. Make sure you arrive with plenty of time and secure a good place to sit. The auctioneer should be able to see you clearly and you should be able to see what’s happening in the rest of the room.
Keep a clear head
Finally, when bidding, make sure you never panic buy. Some properties may look great on paper, but can turn out to be less than ideal in real life. If you miss out on a property, don’t jump in and bid on a different one instead. Only buy the property you originally wanted and budgeted for, so you’re not left high and dry the next day.