Avoid being an emotional bidder

A house auction is a wildfire for about fifteen minutes and then the hammer goes down and the sale is final; the contracts exchanged are unconditional and therefore binding on both parties. So it’s important that you stay calm and in control of your bidding despite the adrenaline and competition.

Be prepared

• Your first impression might change so visit the property several times beforehand.
• Study the market, particularly recent sales in the area, to get a solid understanding of the property’s value.
• Have your conveyancer or solicitor look over the sale agreement, which is usually available from the agent.
• Go to other auctions to familiarise yourself with the process. Study the auctioneer and the bidders, taking particular note of the strategies used.
• Recognise the emotions you might feel on the day, such as a fear of missing out, a competitive streak, perhaps an abhorrence of losing.
• Make sure you have your loan approved in writing beforehand; that way, you will know how much you have to spend.

Take control

• Arrive early and register your intention to bid. Registration is required by law, but you can still choose not to bid if you change your mind at the last minute.
• Take a deep breath, remind yourself once more of your limit and know that if you don’t get this one, there will be another perfect house waiting for you.
• Once bidding starts, let the auctioneer know you’re there and bid confidently.
• When the bidding is nearing your limit, pay close attention. Is it still growing in large increments? If so, be prepared to walk away.
• If it has slowed down or is creeping up by very small amounts, you can either try to wear down your opponents or you could try one last bid, close to your limit. This may just be enough to deter the other bidder(s) and ensure the hammer goes down for you.

Organise backup

If you’re not sure you’ll be able to stay strong in the face of possibly fierce competition, ask a relative or your lawyer to bid on your behalf.

Most importantly, keep calm and run your own race. If you don’t win this one, put it down as a learning experience and tell yourself there’s a much better home waiting for you. You want good outcomes from your buying decision, and getting swept away in the heat of the moment can land you in more trouble than any house is worth.