Bidding to win at auction, regardless of the outcome

Whether you’re bidding for a prized piece of real estate or rare work of art, auction results — on the surface — can be a triumph or travesty.

The outcome should always depend on the financial discrepancy, rather than an emotional attachment.

But how do you navigate the adrenaline-charged auction environment without overpaying, overplaying or missing out?  

Stick to the game plan

Preparation is key, so it is important for buyers to devise a game plan while making allowances for incremental changes without overcommitment.

Removing emotion from the equation is primary. If you are unable to bid with a cool head under pressure, enlisting an auction agent, representative or trusted friend ensures you won’t waver from your financial limit. 

Do your homework

By researching prices, you’ll discover that most sales normally occur for unusual figures, such as $412,500 or $728,500. With this in mind, set your limit slightly above a round figure (for example, $527,000 rather than $525,000). 

In this way, you can eliminate opposition bidders with a minimal increase.

On auction day, arrive at least 30 minutes early and keep an eye on who is examining the contract to determine the volume and calibre of competition. 

Lateral thinking

To a degree, the auctioneer is the director and each bystander has a role to play. 

Some industry insiders recommend that serious bidders start with a high bid that will blow the also-rans out of the race. The theory is that doing so eliminates most of the opposition from the outset and proves your purchase commitment. 

Others say you should only start bidding when the reserve price is reached, and the property is declared to be “on the market”. Using this method, you won’t declare your hand too early.

Adopting plan B 

Another route to avoiding the stress of auction day is to make a prior offer. 

Industry research indicates that more than 90 per cent of buyers would prefer not to go to auction — opting to negotiate with the owners if the asking price is made clear. 

Regardless of personal success or disappointment, it’s not a matter of winning or losing — but abiding by predetermined limits to achieve your aim. 

chrisbrown1224

Managing Director – New Vision Financial Services & New Vision Real Estate After years in the banking, finance & commercial sector Chris noticed that the industry needed a company with a personal touch that offered their customers a complete solution. In 2015 New Vision Financial Services was created to allow our consultants to use their experience (including approving and structuring large complex commercial transactions through to basic home loans) and to concentrate on offering a personalised service to their clients. With the growth and success of New Vision Financial Services a decision was made in 2019 to launch New Vision Real Estate to provide an end to end solution for client weather they be first home buyers or seasoned investors. Chris has built a team at New Vision Financial Services and New Vision Real Estate that have access to over 70 different lenders, insurers, lawyers, accountants and financial planners giving you more flexibility when making a decision. We offer a full service Real Estate agency offering Sales, Leasing, New Developments, House & Land and Commercial. Call me anytime on 0433 181 544 or email chris@newvisionfinancial.com.au The team at New Vision Financial Services have access to over 70 different lenders, giving you more flexibility when making a decision. Our consultants have had extensive experience within the banking, financial and corporate sector. At New Vision Financial Services we specialise in finance lending for home, investment, business, commercial, asset, debtor and many other requirements. As New Vision Financial Services has progressed, we have developed strong relationships with professional service providers such as; Financial Planners, Accountants, Settlement Agents, Leasing & Equipment Providers, Debt Management Specialists and any more to allow our clients access to a complete suite of services.