Bidding at auction – for the majority of us, this can feel like stepping into the Thunderdome.
After all, only one will leave victorious.
Chances are, all the other bidders are just as nervous as you. So how do you get the upper hand without letting your emotions run away?
In episode 20, we dissect “Bidding tactics 101”
Listen as David Johnston, Cate Bakos and Peter Koulizos take you through how to keep a cool head on auction day, reading the play and strategies to add to your arsenal.
- The art and science of removing emotions when buying property
- Making the first move – why the first property you buy is the most important of all
- The seven rules of bidding at auction
- There’s more to an auction than just putting your hand up
- The critical mistakes of property investment – starting without a plan
- The ‘best and highest’ method of bidding
- Why short-term investing has long-term consequences
- Property Cycle Management – why now is always the best time to buy if it suits your personal economy and you have a long-term property plan (Ep. 12)
- Questions to ask when buying an investment property
- How our mortgage strategy helps us to hold properties
- Why your approach and assessment of risk is paramount to property success! (Ep.10)
- Why the land-to-asset ratio of a property can determine its future price growth
- How data can help property investors identify gentrification before it happens
- Choosing whether to hold or sell investment property
- How to succeed with Property and Create your Ideal Lifestyle
- Mortgage Strategy 101 – YouTube video series.
- Bidding tactics 101 – 3 important things to remember: have your ‘walk away price’, do not overthink or make decisions on the fly.
- Start out with a clear plan, so that all decisions are made the day prior – it’s not a good idea to be making decisions in the pressure cooker, while the auctioneer is yelling at you and the crowd is watching.
- Reading the play – making the first bid. Making the first bid can be a good move to show that you are confident and ready to purchase. You can also strategically set the first bid to knock other competition out early.
- Choose your jumps carefully – if someone is going up by $1,000 – a $10,000 jump may just do the trick.
- Recognising when someone is nearing their limit – it’s all in the pauses and silence.
- Body language – the dead give–away – watch for changes in a bidder’s body language, you can see when it’s game over.
- Visualisation – the key to success. Preparation is a no-brainer – we know we need to practice and prepare for exams and it’s exactly the same for auctions. Think about your limit, what happens if that limit is reached on the day? Would you be willing to go higher? How much higher? Visualise what you will do in different scenarios.
- Price setting – If you are purchasing a home, what is the emotional premium you would be willing to pay? How many properties are like this on the market? Is the market rising? Do you have a time pressure to purchase?
- Time in the market – if you plan to hold this property for the long-term, the extra thousands you spend today to secure the property are going to be a blip on your radar in 20 years time.
- Partner conferences – in the midst of the throws of an action is not the ideal time to decide if you can stretch an extra $5,000.
- Know your auction rules – vendor and dummy bidding.
- Check with the auctioneer if the property is on the market.
- Know who your competitors are – bidding will be carried out differently depending on who you are up against.
- The hard-fought battles against auction peacocks – dads bidding on behalf of their daughters.
- Heckling an auctioneer – the best way to get cut out of the race to a great property.
- Don’t wait until the hammer falls.
David Johnston – The Property Planner’s Golden nugget: if you’re buying with a spouse or partner and you are bidding, stand on your own – do not make eye contact with your partner. Have your partner sitting in the car around the corner, with some champagne on ice, win lose or draw. This way you save yourself from some of the more obvious tells to the other bidders.
Cate Bakos – The Property Buyer’s Golden nugget: always get a legal review before you bid, have the contract looked over by solicitor – you are buying unconditional – there is no cooling off period.