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How to succeed at property auctions: Tips from PropHero

winning auction strategies

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winning auction strategies

How to succeed at property auctions: Tips from PropHero

Mention the word ‘auction’ and it’s likely an intense and nerve-wracking situation comes to mind. But what if auctions aren’t as complicated as you think? 

What if you can increase your likelihood of success at auctions and meet your objectives with ease?

Recently, being at a property auction together with PropHero property coach Arnab Maity led to the discovery of the best pearls of wisdom. We were able to secure a beautiful home in Northern Beaches, Sydney for our client at a very reasonable price, below their budget. 

So what drives our success at property auctions?

In this article, we will share with you the take-home tips and winning strategies that will give you the best chance at a typical property auction.

Pre-auction tips:

 

  1. Do your due diligence. Make sure to complete all necessary homework for the property being auctioned. Start by getting your pre-approval, thoroughly researching the property and the neighborhood, check the market value and get a professional building report to uncover any potential issues with the property.
  2. Work with your solicitor. Collaborate with your solicitor to understand and negotiate the terms of the contract. They can highlight any potential risks and advise you on how to protect yourself from them. This step ensures you’re fully informed before making a bid.
  3. Hire a professional buyer’s agent. Consider hiring a professional buyer’s agent. They can negotiate and bid on your behalf, bringing expertise and a strategic approach to the auction process. Their experience can be invaluable in securing the property at the right price. 
  4. Understand Market Value. Auctions reveal the true demand and market value for a property. This helps you avoid overpaying and ensures you’re making a sound investment.
  5. Set a Strategic Bidding Limit. Have an odd number in mind and stick to it. Set a firm bidding limit to avoid getting carried away and becoming an emotional bidder. Most importantly, ensure that your limit never exceeds your borrowing capacity.

Auction day tips:

 

  1. Read the room. Observe the auction attendees, their level of confidence and their bidding behaviours. This can give you insights into the competition.
  2. Confidence is key. Instill confidence by being the opening bidder. It sets a strong tone and can sometimes discourage less confident bidders. 
  3. Keep a level head and make decisions based on logic, not emotion. Auctions can become intense, with relentless competition, so it’s crucial to stay calm and composed. Maintain your confidence, stand your ground, and don’t let the pressure crack you. 
  4. Be prepared for either outcome: win or lose. Don’t become fixated on acquiring one particular property. Remember, there are always other opportunities. Stick to your budget and strategy, knowing that it’s better to walk away than to overextend yourself financially. 
  5. Avoid getting emotionally attached or overconfident, as this can lead to overpaying. Stay focused and don’t let bravado cloud your judgment. Stick to your strategy and remember that your goal is to make a smart investment, not just to win at any cost.

By following these tips, you can navigate the auction process with greater ease and confidence. Remember, the goal is to secure the best property at the best price, without unnecessary stress or financial strain.

At the heart of PropHero’s philosophy is always prioritising our clients’ best interests. The result? Significant savings of energy, time and money in the process of helping clients purchase their dream home or investment property.

If you’re ready to take your property investment to the next level, book a call with our expert team. We’re here to guide you through every step and help you achieve your property goals.

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