Auction Bidding Strategies

Article by Tania Butler-Kemp December 16, 2022

Are you looking to purchase a property through an auction? Auctions can be a great, transparent way to purchase a property, but they can also be a little intimidating. With multiple bidders vying for the same property, it can be challenging to come out on top. Fortunately, we have put together some auction bidding strategies that can help you increase your chances of success. In this post, we’ll explore some tips for winning the bid at an auction.

Tip 1: Arrive early and get your bidder’s paddle number and ID

One of the keys to success at an auction is being prepared. Arriving early allows you to register for the auction, get your bidder’s paddle number, and have a good look around the property. It also gives you the opportunity to scope out the competition and get a feel for how many people are interested in the property.

Tip 2: Bring a friend or family member

Auctions can be stressful, so it’s always helpful to have a friend or family member with you for moral support. Having someone to talk to can also help to distract you from any anxiety you may be feeling.

Tip 3: Set a non-round maximum price

Setting a non-round maximum price, with a buffer, can increase your chances of securing the property. For example, if your maximum price is $500,000, consider bidding $502,500 to give yourself a little wiggle room.

Tip 4: Position yourself well

Positioning yourself in the right spot can give you a strategic advantage. Try to stand to the side of the auctioneer to ensure you have a clear line of sight to them and can keep an eye on the other bidders’ body language.

Tip 5: Act confidently

Confidence is key when it comes to bidding at an auction. Be assertive and call out your bid without waiting for the auctioneer to call out the number. This can help you to take control of the bidding and show other bidders that you mean business.

Tip 6: Use larger bid amounts to show control

Using larger bid amounts can also help to show your confidence and control over the bidding. Instead of bidding $1,000 increments, consider bidding $5,000 or $10,000 increments.

Tip 7: Decide who holds the bidder’s paddle

If you’re bidding with a partner, it’s essential to decide ahead of time who will hold the bidder’s paddle. This can help to avoid any confusion or conflict during the bidding process.

Tip 8: Bid quickly

When it comes to auctions, time is of the essence. Bid quickly and take the next bid while others are still deciding. This can help to keep the momentum going and prevent other bidders from gaining the upper hand.

Tip 9: Don’t be afraid to hit your top price

Finally, don’t be afraid to hit your top price. Show confidence in your bidding, even if it’s your final bid. Remember, the worst thing that can happen is that you don’t win the property. Don’t let fear hold you back from making a bid that could secure your dream home.

In conclusion, auctions can be a fantastic way to purchase real estate, but they can also be stressful. By arriving early, being prepared, and acting confidently, you can increase your chances of success. Don’t be afraid to bid boldly and take control of the bidding process. With these tips in mind, you’ll be well on your way to securing your dream home at auction.