These are the things you need to do before auction day

There’s a reason we compare auctions to sport. They both involve strength, battles of wits, soaring and diving emotions and usually draw a crowd.

Depending on where you end up on the day, an auction is either a sensational way to sell property or an exercise in pain and anguish.

But, as a buyer, you can take out some of the anxiety by being prepared and approaching it as you might a sport – combining physical preparedness with a game plan interwoven with strategy and psychology.

Home-loan specialist Benjamin Younan points out that before you even start thinking about the match – or sizing up the opposition and assessing the field – you must take a first and vital step.

Mr Younan says before your search begins you need to secure approval for finance. Otherwise, you risk falling in love with a property (or properties) outside your price range.

“The main purpose of getting pre-approval is to know what your true borrowing power is,” Mr Younan says. “There’s been a lot of regulatory scrutiny over the past 18 months and we’re seeing a tightening of credit criteria across the board.”

Chris Kavanagh, an auctioneer and partner with Barry Plant Inner City Group, says it’s vital to inspect as many comparable properties as possible to get a feel for the market in that area.

Find out what has sold and for how much, which will allow you to bid at auction with the confidence of knowing you’re not paying over market value.

Victorian general manager of The Agency and champion auctioneer Peter Kakos says you should attend as many auctions as possible, “to get a feel for auctioneer styles and the flow of an auction”. Speak to agents and get their opinions, but remember, nothing beats your own research.

Mr Younan says it’s important throughout the process to keep reminding yourself of the limit of your borrowing capacity and your maximum purchase price. Speak with the auctioneer before the day and establish where bidding is likely to start.

“Know that if you go over your borrowing limit, those further funds will have to come from either a higher deposit or in the form of a guarantor,” he says.

Property strategist Michael Yardney advises being up front with the agent about your interest in the property.

“Some buyers try to be secretive about their intentions and end up being disappointed when the property sells before auction,” Mr Yardney says.

Ask the agent to provide a sale contract for your home-loan specialist or solicitor to review, go back to the property for second [or] even third inspections, take measurements and, if necessary, get a building inspector or builder to inspect the property.

On the day itself, have a concrete game plan. And according to Mr Kakos, that game plan should resemble a grand final strategy: blitz them in the first quarter, then consolidate and give it everything you’ve got in the final quarter.

“My advice is start strong, wait, finish strong,” he says. “Kick the ball into play and demonstrate strength and certainty from the get-go.

“Allow the auction to find its pace and assess other bidders and their speed to bid. Breaking or attempting to break down bidding increments is a good way for a buyer to slow the pace.

“If and when the property is announced on the market, hesitation has no place. Bid firm and bid strong, but obviously within your limit.”

Mr Kakos says the psychology of this approach is to give other buyers a sense that you will pay anything for the property and cultivate a “why bother” approach among the competition.