1. Work out what the property's worth and what you're prepared to pay.
Research recent sales, talk to agents, explore the neighbourhood and speak to neighbours. This simple strategy will help you get a feel for what you might have to pay to secure the property at auction.
2. Get to know the selling agent.
Attend lots of auctions and study the style and technique of the selling agent. Take note of how people bid and notice when the propertyis "on the market" to be sold.
3. Have the property and the documentation thoroughly checked.
Arrange to have the property inspected by a qualified building and pest inspector. Ask for a copy of the "Section 32" documentation for the propertyso that you (or your solicitor) can check that everything is in order prior to auction.
4. Don't be afraid to ask for help.
If you're unsure about bidding at auction get someone else (who you trust and has experience) to bidon your behalf. I often provide this service tomy clientsat no cost.
5. Negotiate terms before the auction.
You may be able to negotiate the settlement period or deposit with the vendor prior to auction. This strategy may also help yougauge the level of interest in the property before you bid. For example - if the vendor is willing to negotiate terms it may suggest that the level ofinterest in the property is low, on the other hand if the vendor isn't willing to negotiate terms it may indicate that they feel the level of interestin the property is strong.
6. Know when to walk away.
Don't let your emotions take over. Set your limit well before you attend the auction and STICK TO IT!
Follow these simple steps and you'll be more successful at your next auction.