Canberra agents give the inside-run on spring bidding

Spring is bringing out the buyers to weekend auctions, but what can they do to give themselves an inside run to a new home?

Richard Luton of Luton Properties says buyers should always let an agent know that they are seriously interested in a property.

“Tell the agent early; you may want him or her to contact you with a chance to counter if a strong offer is received before auction,” he says.

On the day, Luton says you need to “bid to buy”.

“I’d recommend people bid strongly within their budget, but they need to know what their walkaway limit is,” he says.

“But it’s a good tactic to have a contingency up your sleeve. There are plenty of people out there who regret not finding that extra few thousand to buy the home of their dreams.”

Stephen Bunday of LJ Hooker Dickson says that people should bid on emotion rather than logic.

And, he says, different classes of buyers have different motivations.

“Home buyers are more likely to get caught up in the event; investors and developers tend to be more clinical in their calculations,” he says.

“My advice on auction day is to go early and go hard. It’s a potential psychological blow to other bidders who can become intimidated by a show of determination.”

Conversely, Bunday says the other tactic is to wait, wait, wait and come in just before the hammer.

“Upping the ante at that point can similarly unbalance competitors who had thought all the bidders were out in the open,” he says.

Eye on the prize

• State your interest. Let the agent representing the property know your strong interest as soon as possible – in case there is an opportunity to present a competitive offer before auction.
• Bid early and frequently. Start with a strong bid when the auction gets underway and keep the momentum going; create the impression among other bidders that you will not be beaten.
• Keep something back. Know your budget, but keep a contingency up your sleeve. Leave with no regrets for the sake of perhaps another couple of bids that might take the day.