Auctions are a daunting proposition – especially if you’re in it for the win, but without the experience of what goes on in an auction. Many prospective homeowners like to be part of the auction process – after all, investing in a home is perhaps one of the biggest investments you’ll ever make. While auctions are filled with experienced professionals who know how to get a good price, it’s not as tough as it sounds – especially if you stick to a few simple rules. And most importantly, you need to stay calm and open-minded – making decisions based on emotion will do your pocket more harm than good. Here are some golden rules to stay ahead of the pack in an auction.
The Dress Code
Although there isn’t a specific dress code to attend an auction, going in a t-shirt and torn jeans is bound to do more harm than good – especially when you’re not taken seriously. Always go dressed professionally – preferably in a suit. Dressing up gives the perception of affluence and influence. Some bidders are likely to bow out earlier in the race if they perceive you to have a lot of resources at your disposal – even if that’s not necessarily true. If you have made up your mind to purchase a particular home, consider borrowing or renting an upmarket car and drive right up to the gate of the auction. This creates an edge on a deeper psychological level.
Stay Confident
It is important that you are perceived as being confident. Your clothing and supercar will be worthless if you fluff out in your demeanour. Wait and observe others bidding – make a few but confident bids – after all, you don’t want to sound desperate. Never reveal your entire budget at auction. For example, if the auction starts at $500,000, do not bid $600,000 right away. Play your cards right – an auction is like a game of poker – the seller and buyers have a game plan. Maintain a continuous perception that you have the resources to beat all the other buyers by staying confident throughout the entire bidding process.
Choose Your Company Wisely
It is important that you choose the people who accompany you very carefully. Expert auction winners recommend not taking your family along. Having your family alongside puts added pressure on you. Your family’s behaviour under pressure can help other buyers read your situation very clearly. Children tend to get emotionally attached faster. If they happen to love the house you are bidding on, you may end up increasing your budget by far more than you had committed in the hope of winning through one final bid. Preferably go alone for an auction. If you still need someone to accompany you to boost your confidence, consider taking your best friend along – also dressed for the part.
Auctions can be enjoyable if you know how to play the game. Visit a few auctions and observe the bidding process to get yourself familiarised before you plan on making a bid. This will boost your confidence and will equip you with enough experience to take part in an auction yourself.