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How to Win at Auction How to Win at Auction
Auctions are part theatre, part torture. You can minimise the pain by know what to expect and following a simple, well-defined best-odds strategy.You have little room for error. When you buy at auction, you must pay a 10 per cent deposit – and there is no cooling off period. But most of your rivals will lack bidding experience too. Sticking to a clear strategy can give you the best chance of a good buy at a good price. Step 1: Get to know auctions
Long before you put your hand up at auction, get used to auctions. Attend as many auctions as you can, to understand how they work.Talk to agents and compare their quoted prices with what properties actually fetch. Beware under-quoting. In most capital city markets, add at least 10 per cent to the quoted price. A lot of money can be wasted preparing to buy a property that was always out of reach. Step 2: Get set to buy
Before auction day arrives: - Organise your finance (we trust you’ll use the eChoice service).
- Have your solicitor check the sale contract.
- Get a condition report and pest inspection on the property.
- Decide the maximum you are willing to bid – your firm bidding limit. This firm bidding limit is your strongest tool for auction success.
Step 3: Bid only when the property is truly “on the market”
Arrive early and get comfortable. Try to identify other true bidders – or get a friend or relative to do this.Then hang back. Most auctions have two phases. In the first phase, real estate agents and their clients regularly use fake or “dummy bidders” to push auction prices up. (This site has a separate article on dummy bidders.) The easiest way to pay too much at auction is to enter this first phase and bid against a friend of the seller – or, even worse – against a seller who exists only in the auctioneer’s creative imagination.In our experience, you maximise your chances of a good price by bidding only after the first phase has finished and the property is declared “on the market” or “selling today”. You should check how the auctioneers behave in your local market. But in the Melbourne market, particularly, the auctioneer will often make a dramatic and final-sounding declaration like “going once, going twice, third and final time, all done” – and then stop, disappear into the house to “confer with the sellers”, and re-emerge moments later to restart the auction.When something like this happens, the auction has entered its second phase – the phase where dummy bidders cease their activity and you can begin bidding.This strategy may occasionally mean you miss an opportunity to bid. But unless you must have the property almost regardless of cost, it’s likely to be your best strategy.
Step 4: Bid firmly up to your limit, THEN STOP
Once the property is declared to be on the market, the second phase has begun and you can feel free to bid. (Even here, some experienced bidders hang back until the auctioneer is on the verge of selling to another bidder; by suddenly coming in late they hope to psychologically deflate their rival.) Your best strategy now is probably to bid firmly, confidently and quickly to suggest to rivals that they won’t win. You can also:- Try to slow down the bidding momentum by offering smaller amounts.
- Ask the auctioneer if he is “bidding on behalf of the seller”.
Once you hit your limit, just stop bidding. Remember, there are other homes out there. The streets are full of them.
Rule 5: Never, ever break Rule 4
Auctions don’t have firm rules, but they do have good and bad strategies. For most buyers, the steps above represent the best chance of buying a good property at a good price. And whatever you do, stick to your bidding limit.
From<http://www.echoice.com.au/buying-a-home/how-to-win-at-auction/> | 
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发表于 2013-9-9 09:14:31
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