FAQ: How can I buy a property without bidding at the auction?
While auctions are an excellent way to buy Australian or New Zealand real estate, we know that it isn’t for everyone. Whether you are simply shy or otherwise uncomfortable with bidding at auction, you’ll be glad to know there are plenty of ways to get a good auction result without ever raising your bidding paddle.
The pre-auction offer
There are plenty of ways to get a good auction result without ever raising your bidding paddle.
The pre-auction offer is a powerful tool used by buyers to ensure they get the first bid on a property before the auction date even arrives. As its name implies, this method allows a buyer to make an offer on a property, which then becomes the opening bid at the auction if accepted by the vendor. If no other buyers attend, or no one wants to beat your bid, you win – as simple as that!
However, you do have to be clever about it. If you don’t make your pre-auction offer high enough and you don’t attend the auction, you might find yourself getting outbid without a physical presence.
Using an agent
If you’re looking for a property for sale, you’ve probably already gone to your local real estate agent, but these experts can help you even further. If you’re concerned about underperforming at auction, simply speak to your local professional about hiring them to bid for you.
This has a number of benefits, including the fact that they will have far more experience, know the right bidding strategy to win and will be far less likely to give in to the competitive spirit. All you have to do is set a limit and your agent will do the rest.
Playing the waiting game
Auctions aren’t all about being an unstoppable whirlwind of bids.
Once you have registered for an auction, you are under no obligation to actually bid at it. In fact, many people go along to a couple of auctions just to see what the experience is like – due preparation is an admirable exercise, after all.
However, you can also use this to your advantage. Once the property passes in, many people think that it is only the highest bidder that gets to negotiate with the vendor. This is not true. As a registered buyer, you can enter into negotiations along with the highest bidder, if that is what you are more comfortable with.
This is a great way to get a good deal without being caught up in the emotional rollercoaster that is an auction.
Auctions aren’t all about being an unstoppable whirlwind of bids. Be cool, be calm, be collected, and through these methods you might just find yourself winning without a single bid made.