6 ways on how to make the most of an auction

Published on November 30th, 2020
  Written by 
Bill Tsouvalas
Bill Tsouvalas is the managing director and a key company spokesperson at Savvy. As a personal finance expert, he often shares his insights on a range of topics, being featured on leading news outlets including News Corp publications such as the Daily Telegraph and Herald Sun, Fairfax Media publications such as the Australian Financial Review, the Seven Network and more. Bill has over 15 years of experience working in the finance industry and founded Savvy in 2010 with a vision to provide affordable and accessible finance options to all Australians. He has built Savvy from a small asset finance brokerage into a financial comparison website which now attracts close to 2 million Aussies per year and was included in the BRW’s Fast 100 in 2015 as one of the fastest-growing companies in the country. He’s passionate about helping Australians make financially savvy decisions and reviews content across the brand to ensure its accuracy. You can follow Bill on LinkedIn.
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Auctions can be a family affair that is competitively fun, especially when you listen to the charismatic suited person rattling off the features of the house. Before you get swept up by other people’s excellent negotiation skills, or equally surprised at how much a house could sell for at an auction there are ways to make the most of it. If you want the best deal to swing in your favour, there are five things you need to know.

Do your research

This one is kind of a no-brainer if you are looking to score a good investment. This is the time you can make your dream of becoming a secret agent come true, and put those social media stalking skills to good use.

Get as much information on the property that you are interested in before you arrive at the auction. The additional information that you will be able to get about the house and the neighbourhood in which it is in will help you know whether it is worth investing your time and money.

Go to a couple of Auctions

Sometimes it helps to be wallflower and see how auctions play out. It will give you the knowledge on how it works and give you a chance to muster the courage to speak publicly. It will also allow you to adapt to the fast-paced action that is usually associated with auctions.

Walk that talk

Now that you are armed with information it will give you a bit of backbone when it comes to bidding publicly. If you are concerned about how to position yourself at an auction it is advisable to stick to the middle of the room where everyone can see you. Back up your research with a confident body language by looking determined and being decisive about what you say and your movements. After all, you know what you are talking about.

Playing it by ear may not work in your favour

Instincts can help in some instances, but when it comes to bagging an auction you will have to pick up on the nuggets that are given out by the estate agent. Pay careful attention to the advice and recommendations that are given throughout the auction campaign. Always weigh what they are and aren’t saying before making your final decision.

Be prepared financially

You might be able to knock the ball out of the park and get the property, but not having enough finances to cover your win will be rather sad. It’s all about coming with a game plan. If you don’t have enough in your savings account for the upfront payment you can always apply for a home loan. The catch is to compare deals so that you get the best value for your money.

The buzz at an auction could be fun, but it’s all jokes aside when it comes to signing the contract. You have every right to ask the auctioneer about anything you are unclear of when it comes to signing the contract. You can also go as far as enlisting the help of a professional to get a second opinion.

A bonus tip is to go to the property before the auction and scan it for any defects or problems it has so that you know what you are getting yourself into when it is time purchase. D

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