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Expert Auction Bidding Strategies
Expert Auction Bidding Strategies
Save money and secure your property at auction
Auctions are highly competitive and stressful, and a buyer’s agent will often try to secure a property before auction. However if a seller is determined to go to market, it is vital to have an auction strategy in place in order to buy the right property, for the right price. Your auction bidding strategy can be the difference between winning and losing your dream property.
Newin & Co’s Buyer’s Agents will work with you to ensure you don’t overpay, and have the best possible chance of winning your auction.
Who should use newin &co’s Auction Bidding service?
- If you are not comfortable with bidding or how to build an auction strategy
- You are unsure of the dynamics at play between other bidders and the vendor
- You do not want to attend in person in order to maintain anonymity
- You are not sure how much you should be bidding
- Unable to attend the auction in person
- You want to leverage Newin & Co’s network of real estate agents in order to get a competitive advantage
- Concerned you are too emotionally invested in the property and might overpay
Expert Auction Bidding Strategies
What can a newin & co’s agent do for you at auction?
- Be your professional negotiator and buyer’s advocate
- Provide advice on market comparisons to determine if a property is overpriced, underpriced or fair market-value
- Utilise tactics and strategies based on experience and training to give you a competitive edge at auction
- Guide you through the auction process and rules
- Understand and navigate auctioneers’ tactics to make sure you don’t get intimidated or overpay
- Act on your behalf if you either can’t or don’t want to attend an auction in person
- Post-auction negotiation if the property passes-in
WHAT YOU NEED TO KNOW ABOUT AUSTRALIAN AUCTIONS
Expert Auction Bidding Strategies
What are current auction clearance rates?
Newin & Co closely monitors metro-city and state-wide auction clearance rates. These rates are a key indicator for the level of future competition in the market and can help to inform an auction bidding strategy.
Key words to know that help you win at auction
Reserve Price
The minimum price that the seller is willing to accept for the item or property. If the bidding does not reach this price, the item won’t be sold.
Vendor Bid
A bid made by the auctioneer on behalf of the seller. This is used to advance the bidding but cannot be used once the reserve price is reached.
Hammer Price
The final bid amount when the auctioneer’s hammer falls, indicating the item has been sold.
Passed In
This occurs when the highest bid does not meet the reserve price, and the property is not sold at auction.
Absentee Bid
A bid made by someone who cannot attend the auction. They submit their maximum bid in advance, and the auctioneer bids on their behalf.
Under the Hammer
Refers to an item or property being sold at an auction.
Bidders Guide
A document provided to potential bidders at an auction, usually containing the rules and conditions of the auction.
Coolinf-off Period
A period after the auction where the buyer can change their mind and cancel the sale. This period varies by state in Australia.
Opening Bid
The first bid placed at the auction.
Fall of the Hammer
The moment when the auctioneer closes the bidding and the property is sold.
Inspection Times
Scheduled times when potential bidders can view the property before the auction.
Jump Bid
A significantly higher bid than the previous one, often used to intimidate other bidders.
Knockdown Price
The price at which the property is sold at the auction, synonymous with hammer price.
On The Market
Indicates that the reserve price has been met and the property will be sold to the highest bidder.
Proxy Bid
A bid placed by someone representing a bidder who is not physically present at the auction.
Reserve Bid
Another term for reserve price, the minimum price the seller will accept.
Vendor's Statement
A document provided by the seller detailing the property’s legal description, zoning, restrictions, etc.
Bid Increment
The minimum amount by which a new bid must exceed the previous bid.
Gazumping
Occurs when a seller accepts a verbal offer on a property but then accepts a higher offer from another buyer.
Settlement Period
The time between the auction and when the buyer takes possession of the property.
FREQUENTLY ASKED QUESTIONS
What is the best auction bidding strategy?
Each auction is unique, so it’s important to understand the dynamics at play before you start to bid. It is important to understand the market dynamics, how many other bidders there are, and how serious they are, as well as the motivations of the seller. It is also key to understand the tactics the auctioneer and real estate agent selling the property are likely to use in order to try to increase the price. Utilising the services of a buyer’s agent with existing real estate relationships and experience at auctions can be helpful to increase your chances of being successful at auction.
Is it OK to bid against yourself at auction as an auction bidding strategy?
Technically you can bid against yourself at an auction, and a real estate agent may encourage this if the property has not yet reached the reserve price. However it might be more advantageous to negotiate with the vendor if the property passes in (doesn’t sell at auction) so it is important to have a good understanding of your auction bidding strategy.
How do I register for an auction?
Each state in Australia has different rules about registering for an auction. Newin & Co’s buyer’s agents in Sydney, Melbourne, Brisbane, the Sunshine Coast, the Gold Coast and Adelaide have experience in the process and will guide you through the process. The Real Estate Institute of Australia and the equivalent organisation in each state are great resources to help you understand the process of an auction.
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