Bidding at an auction can be a daunting and stressful experience. Whether it is your first home or an investment property, the game is generally the same. Like it or not, unfortunately, there may be someone who is willing to spend more than you. Here are a few important things you should think about to ensure you don’t overreach financially when bidding on a property.
Do Your Homework
It is crucial to do your research before attending an auction. By researching the property and others like it, you will be able to determine your maximum bidding price. Find out who the auctioneer of the property is and go to a few of their auctions to ascertain how they operate in an auction. Planning ahead can reduce the stress of buying at auction.
Have a Game Plan
At the auction, it is vital that you keep calm and appear confident. By acting confident, you are gaining an edge over your competitors, as many will be just as inexperienced with auctions as you are. A common mistake that many bidders make is revealing their maximum bidding price to the real estate agent. This may sway the reserve price of the house, causing it to increase. Try to reveal as little information as possible, in order to gain the upper hand.
Keep Your Options Open
A lot of people start to panic when the bidding price of the house comes close to their maximum bidding price, causing them to overbid. Focus on your limit and know when to walk away. Don’t commit to one house. As heartbreaking as it is, someone else may outbid you. There are many other houses out there, so don’t get too attached to the first one you see. It may take some time before you find the perfect house, but waiting for a great house that you can actually afford is a lot less stressful than struggling to pay for one.
How Can Deposit Power Help?
Deposit Power understands that finding your dream home does not always happen straight away. Deposit Power Guarantees can be offered for up to 10% of your maximum bidding price and are flexible, with a six-month expiry date, allowing you to bid on a number of auctions over time.