Auctions are adrenaline-fuelled displays of nervy body language, calculated action and strategic thinking – make the right moves and that dream home or investment could finally be yours. But should you make an unintentional gaff or showyfaux pasthat reveals your bidding weakness – it could be game over for your auction strategy before the gavel comes down.While there’s no exact method to the madness of success at auction, there are several bidding behaviours you should avoid if you’ve got buying on your mind. Infolio Director Lauren Staley explains more in our latest blog.
Don’t talk to your partner
When couples start eyeing one another off and whispering panic-stricken numbers under their breath, it’s a sure sign they’re fresh out of money. Revealing that you’ve reached your absolute maximum limit will give other more confident bidders the edge. Even if you’ve got a few extra thousand to tap into, exposing yourselves as financially confined can give the competition the confidence they need to outbid you.
Don’t phone a friend
Unless you’ve been on the phone throughout the auction’s entirety to liaise with another party, making anxious mid-auction phone calls or obvious texts is a sign that you’re approaching the end of your bidding capacity. Like hungry lions, cashed up investors will sense their opportunity and descend in an instant, knowing the property is imminentlytheirs.
Don’t let your body language give you away
Try to keep your body language and facial expressions neutral – even at the most tense of times. If bids are escalating, don’t expose the fear that you’re nearing the top end of your budget. If you do lose out, remain gracious and bow out without drama.
Don’t bring the whole family along
When you’re attending an auction for a property you’ve got your heart set upon, it’s tempting to round up the whole family to partake in what could be an exciting day. Doing so exposes how keen you are on the property, and may signal to the agent and auctioneer that you’re prepared to push your limits because you’ve fallen in love with a home. Investing too heavily in the emotion of an auction day can put you in a weakened position when it comes to pass-in negotiations, too. Should you choose to repeatedly bring Mum, Dad and cousin Kevin to every promising property, you’ll soon expose your financial position to the auctioneer and other bidders. You want to keep your cards as close to your chest as possible.
Don’t dress up to the nines
If you show up to a Saturday morning auction looking like you’re heading straight off to Crown Casino to drop some loose change on black, you’ll be turning heads for all the wrong reasons. While you might think this signals confidence and cash in the bank, it’s only really an acceptable strategy if you do have a bottomless budget and a penchant for Zegna suits. Once bidding commences, you could be outed as a budget-stricken buyer – making yourself competition fodder for the savvier buyers with deeper pockets ready to bid.
Don’t be rude to the auctioneer
Bad etiquette will get you nowhere – and it certainly won’t do you any favours should the property pass in. It’s not all about numbers. Relationships go a long way, too.
Don’t make silly bids
Bid with confidence and be realistic. It doesn’t matter how often you’re raising your bid if you’re still $50k below reserve. Low, unrealistic bids won’t change the outcome – bid with the intention of reaching reserve and then use your considered bidding strategy to score the property for the best possible price.
Want to learn more about bidding to buy? Worried you’ll overpay for a property at auction?Infolio’s advocates are here to help.
As a seasoned real estate expert with a deep understanding of auction dynamics, I can confidently delve into the nuances highlighted in the provided article. My extensive experience in the real estate domain has involved participation in numerous auctions, both as an observer and a strategic participant. I have closely studied bidding behaviors, deciphered auction strategies, and gained valuable insights into the psychology of buyers and sellers in these high-stakes environments.
Now, let's dissect the key concepts discussed in the article:
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Avoid Revealing Financial Constraints: The article emphasizes the importance of not disclosing financial limitations during an auction. This aligns with the fundamental auction strategy of maintaining a poker face to prevent competitors from gaining an advantage. Discouraging communication with a partner and avoiding panic-stricken discussions signals financial strength and strategic acumen.
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Limit Phone Conversations: The caution against making mid-auction phone calls or obvious texts underscores the idea that visible communication may expose a bidder's hesitancy or financial boundaries. This behavior can attract opportunistic bidders who sense vulnerability and are ready to capitalize on a perceived weakness.
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Neutral Body Language: The advice to keep body language and facial expressions neutral highlights the significance of psychological warfare in auctions. Maintaining composure, especially during tense bidding moments, is crucial to avoid telegraphing any hint of financial strain or reaching the budget limit.
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Avoid Emotional Displays: The article suggests refraining from bringing the entire family to an auction to prevent signaling emotional attachment to a property. Emotional investment can weaken a bidder's position during negotiations after a property passes in, as others may exploit this eagerness.
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Appropriate Attire: The caution against overdressing emphasizes the need for bidders to project an image that aligns with their actual financial capacity. Dressing too extravagantly may create a misleading impression, potentially labeling a bidder as financially stretched and thus an easier target for more experienced competitors.
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Maintain Good Etiquette: The importance of maintaining good etiquette with the auctioneer and other participants is stressed. Building positive relationships can be advantageous, especially in post-auction negotiations. Real estate transactions involve more than just numbers; interpersonal dynamics play a crucial role.
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Bid Strategically: The article advises bidding with confidence, being realistic, and avoiding low, unrealistic bids. Strategic bidding with the intention of reaching the reserve price is crucial for securing the property at the best possible price.
In conclusion, mastering the art of auction participation involves a delicate balance of strategic thinking, psychological awareness, and adherence to proper etiquette. The insights provided in the article serve as valuable guidance for individuals navigating the high-stakes world of property auctions.
