Tips to prepare for a Canberra auction - from an auctioneer

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Auctions make for hot property – especially in Canberra. Research shows that nearly one third of Canberra property sells under the hammer, more than anywhere else in the country.

Prices are higher at auction too, with estimates of nearly $120,000 more, in most cases.

It’s a tense environment, and one that many people find intimidating. We’ve brought in expert auctioneer and sales consultant Alec Brown to give aspiring buyers some auction tips.

Find your wiggle room

Going in prepared is the number one thing every bidder needs to do. That means loan pre-approval and knowing the market price, but also knowing your own wiggle room.

If you’re bidding on what will be your dream home for 10-15 years, and it gets competitive, do you have room to spend the extra $5000?

Calculating where you can edge above your limit is crucial; over a loan term, it could only work out to $10 extra a week.

… And the seller’s wiggle room

The sales contract is always going to be plain and clear before the auction. Confident bidders will look at this and request any modifications they want in advance, so the home they buy is under the conditions they want.

Some of the most common requests we see are for an extension on the settlement period, specific renovations and modifications, or even a part deposit of 5 per cent instead of 10 per cent. Those  little changes can make all the difference.

Get the psychological edge

Ensure you are visible to the auctioneer and the other bidders. Take a dominant front-andcentre position, and make yourself known to get a psychological one-up on the competition.

You want to be in a position where the auctioneer is looking to you with every bid. That way, you can control the room.

How do you make yourself stand out in a Canberra auction?

A strong starting bid can be a key part of this. Statistically, more opening bidders win auctions than anyone else. A strong start can deflate the competition.

You can also do this by increasing bids by a larger increment than the auctioneer is calling for. Just remember that they can reject your bid if they feel it is moving too quickly.

Above all, don’t be daunted by the process. Auctions are the most transparent way to buy property – you know where the money is, and who the interested parties are. There are no questions about the process being uneven or unfair.

Even if it doesn’t work out in your favour, it is done in a clear way that should give everyone confidence in their next step.