There’s a property that I’m planning on bidding for at auction, my first home, actually. It’s all very exciting and scary - I hadn’t been planning to move out of home for another year or so, but my parents spotted this one last Sunday, and called me to tell me that I simply had to see it. So I went and saw it and loved it. Better yet, I can afford it (with help from my parents)! The downside is that this Saturday, it’s up for auction, so after a frantic week of getting my finances in order and preapproval for a mortgage from the bank, I’m going to go for it.
So, I’m asking all of you, who I’m sure have vastly more experience on the subject than I, what do I do to win this auction? Any surefire tips and hints to help me outbid the others and get this house at a good price?
Firstly, set yourself a number above which you will not go, no matter what. Don’t make it a nice round number but a little above one, so say $101,500 rather that $100,000. If the bidding gets to that number just walk away, so set it at an appropriate level so you can do that with no regrets.
Don’t start the bidding; if no-one bids let the auctioneer sweat, it’s not your job to make them comfortable. However after 5 minutes or so, if it looks like no-one is ever going to bid, then you can start. (I did this and I ended up being the only bidder!)
But if it goes normally and the bidding starts low, again you have no motive to tip your hand. Once it starts to slow down you can enter. By this time you are usually down to 2 or 3 opponents. Bid more than the minimum raise above the previous bid but not dramatically so, eg $2000 rather than $1000 raise.
Every time another bid comes in you raise it immediately, no hesitation, as if you have all the money in the world - you’re trying to spook the other bidders into thinking they have no chance against you. They are already disheartened as you have come in as a new bidder just when they thought they had a chance.
Whew. I had a horrible thought that, being a first home buyer, you might have been stuck in some of the…um…ah…less desirable suburbs somewhere out in the boondocks. Vermont is lovely. Are you looking at a unit or a 1/4 acre block?
Extra special good Doper wishes coming your way for tomorrow. Get back here quick and let us know how it went, OK?
I used to be an antiques dealer and bought some interesting things in lots of different styles of auctions, but never bought a house.
But the tips from AndrewT are good. I personally have two additions. First stand in the back of the crowd but in good line of sight of the auctioneer. Nothing worries another bidder is not seeing who the competition is. The other thing I did when I knew my limit (very very important) is to hold up my card once the bidding is underway and don’t put it down and look the auctioneer right in the eye. The auctioneer will now look for you and there is a weird bond between him and you that other bidders will sense. It makes them worry, it also gives you the look that you are going to buy this period.
I would also set what you would like to buy it for as well as the “bidding is slowing down and I think I might get it if I only had done one more bid” bid. When you get to that bid, put your card down and don’t look at the auctioneer anymore. At that point it is too expensive.
I have already had a solicitor (my sister) look over the section 32, and there’s nothing too exciting - there’s an easement through the back that won’t be a problem, and there’s a clause in it that worries me (it basically says that the vendors or the agent can lie to me and there’s nothing I can do), but I’ve had the building itself checked out, and apart from a shoddy paint job, it’s fine - there’s nothing structurally wrong with it. No termites or anything.
So basically, I’m happy that I know the condition of the property, it’s just how to do the auction so that I win…
In the US, it can mean things like unpaid taxes or unpaid contractor repair bills. I think they must be recorded in the county where the property is located. It may be worth your time and money to spend 30 minutes with an attorney to be sure of your rights and resposibilities.
