Tips To buying at Auctions

Auction Day: Tips for Staying Cool and Winning Big

Auction day is both exciting and stressful. It’s a day when you need to be cool, calm, and rational. Having a well-researched plan and setting a strict financial limit is essential. If staying unemotional is a challenge, consider having someone else do the bidding for you.

What Are You Bidding On?

Before heading to an auction, make sure you know EXACTLY what you’re bidding on. Do your homework:

• Get a building and pest inspection.
• Research the neighbourhood.
• Research comparative sales: What have recent properties in that area sold for?
• Check the legal title information.

There's no cooling-off period when you buy at auction, so you need to be 100% sure about what you are buying. Pest, building, engineering, and structural reports are crucial.

Check the Sale Contract

Have your solicitor or conveyancer check the sale contract. They can find things you might have missed or misunderstood. Make sure you are fully aware of all the sale conditions.

Have Your Finances Sorted

If you win at the auction, you’ve effectively bought the property. You will usually need to provide a 10% deposit on the spot, so make sure your loan is approved and ready.

The Auction Process

Attend several auctions before participating in one yourself. This will help you understand the process and gain valuable insights.

Confidence is Key

Be confident and call out your bids with authority.

Stay Within Your Financial Limits

Calculate what you are willing to spend and stick to that limit unemotionally. Exceeding your limit can lead to overpaying and struggling with mortgage repayments.

Don't Give Too Much Information Away

Avoid telling the agent too much, such as the maximum amount you're willing to pay.

Avoid Hesitation

Counter-bid immediately to stay in front. Firing off bids without hesitation suggests to other bidders that the current bid is nowhere near your limit (even if it is).

Throw a Curve Ball to Buy Time

If the auction is moving too fast, throw in a curve ball by placing an uneven number bid, like $17,000 instead of $837,000. This can confuse other bidders and slow the pace.

Leave Emotion at Home

It’s easy to get caught up in the excitement and stress of an auction. If you can't stay unemotional, have someone else or a trusted buyer’s agent do the bidding for you.

Welcome Home

At JKL, we’re here to support you through every step of your auction journey. Our experienced team will help you navigate the auction process with confidence and success.

Experience our JKL real estate family. We’ll put the welcome mat out for you!