The day has come, you've done your pre-auction day prep, your finance has been pre-approved and you're ready to take on your fellow bidders to be the last person standing. Here's what you need to know when buying a house at auction to come home an auction day winner.
Know your strategy
Before the day of the auction, make sure you know what your plan of attack is, including your price limit and bidding strategy. You may want to lead the bidding with confidence or jump in closer to the end once you've assessed how everyone else is going. You should also decide if you want to bid in small, safe increments or aim higher.
The auctioneer may set an amount for how much bids need to increase by, but if there's no set amount, don't be afraid to change the increment throughout the auction if you're not comfortable with how high (or low) the bids are going up each time.
Register to bid
When you arrive at the auction you will need to register as a bidder. Bring a form of identification such as your driver's licence or passport to do so. Bids will only be accepted from registered bidders or their representative. You can also pre-register to bid before the day. This either saves you the hassle of doing it on auction day or, if you'd prefer to avoid the stress of auction day all together, you can place your bid days in advance.
Once you've registered and had one last look at the property, position yourself where the auctioneer can clearly see you. You'd hate to miss an important bid because you were out of sight. Find yourself an angle that gives you a good view of all the potential buyers so you can watch their body language throughout the auction.
Show me the money
All auctions require you to handover your deposit on the day so make sure you have it handy should you win. Check with the agent before the day on what their preferred payment method is as well as what the final price of the deposit will be. It is usually 10% but It can vary so it's best to check with the real estate agent. The most common payment method is typically electronic transfers.
Be prepared to walk away
While we all hate losing, if the sale price exceeds your limit, be prepared to walk away. There will be always be another house so keep your hopes up and keep searching. Your dream home is waiting.