Tips & Tricks the pros will be using in 2012 when buying at auction

Melbourne is generally considered to be the auction capital of Australia, and numerous real estate-based reality TV shows which showcase residential property auctions are ratings winners on prime time television.

Yet week after week there are many disappointed buyers who miss out on buying their dream home or that ideal investment opportunity due to their inexperience with the auction process and a simple lack of preparation.

Here are three simple tips that will help you increase your chances of being the successful bidder on auction day:

Get Involved

As silly as it sounds, it’s important to participate in the auction. Don’t wait for other people to start or you may well risk the property being passed in.  When that happens, the highest bidder at an auction property not sold gets the first and exclusive right to negotiate with the vendor straight after the event. If that’s you, then you could secure the property without any competition.

Be Confident

When you bid at an auction you are there to win! Position yourself in the crowd where the auctioneer and other bidders can see you. Bid quickly and with confidence so you don’t give the other bidders time to think. Positive body language and directing your focus on the competition will give you the appearance of being an informed buyer, knowledgeable about the local market and confident in participating in a process that for some reason scares many people.

Clever Bidding

Do you really want to miss out on your dream home for the sake of $750? Going into an auction with a neat, rounded price limit (i.e. “We’ll go up to $425,000”) is a common approach. A smart bidder will make an odd final bid (for example $426,250) and may just outbid their competitors sticking to a fixed, rounded limit without paying thousands more. Further, while having a budget is important, always remember to be flexible and specific to the ‘feel’ and momentum of the auction as it is playing out in front of you.

Good luck!