10 worst things to say at an auction

Auctions are emotional rollercoasters for prospective buyers at the best of times, but especially in today’s super-competitive housing market.

However there are simple ways to keep your auction day stress to a minimum, including making sure you don’t make any of these common faux pas.

Mistake 1: Saying “I’ll buy it” when you can’t afford it

This is probably the biggest single error you can make. And it’s all about preparation. Check out property prices in the area, inspect the place you’re looking to buy at least once, if not twice beforehand and go a few auctions to get a feel for the process.

At this point it’s a good idea to start looking around for a competitive home loan because you’ll need pre-approval from your bank before you hit the auction. You can start by comparing home loans with RateCity.com.au.

Mistake 2: Not saying anything at all

While it’s dangerous to let your emotions get the better of you, there’s also a risk of getting ‘psyched out’ by what can be an intense and at times overwhelming process.

When bidding, speak clearly, maintain eye contact with the auctioneer, and be confident to counter-bid.

Also read: Home auction clearances bounce back

Mistake 3: Bidding too soon

Agents are said to want prospective buyers to get into a bidding war early because this could lead to a higher final price.

So don’t play into their hands. Ignore the pressure to jump in early. Wait until bids hit the reserve price and then fire away with your opening bid.

Mistake 4: Asking no questions before the auction starts

Look like an auction pro. Throw out some queries to the auctioneer before the bidding process starts such as whether there are any special levies you need to be aware of, or whether a car space is included on the property title.

Mistake 5: Being rude

There’s no excuse to get lippy with the auctioneer during the auction, or indeed any of your rival bidders.

Remember, the auctioneer is the seller’s proxy and it’s their job to do the best for their client. Getting nasty will only put you offside with everyone and add to your stress.

Mistake 6: Bidding with your heart, not your head

It’s your dream home, in your dream location. Still, that’s no excuse for bidding over your pre-set maximum.

It’s easy to get carried away in the hurly burly of the auction, so make sure that you establish a budget beforehand and don’t shift from it. A good place to start is by working out how much you can afford to repay each month, making sure you add in a buffer of around 3 per cent for when interest rates rise.

Mistake 7: Bidding yourself, if you’re really scared

If you’re truly petrified about bidding, or out of town when the auction’s scheduled, it might be a good idea to appoint someone to bid on your behalf.

Importantly, a person who intends to bid on behalf of someone else will need to show the agent a letter of authority to bid for that person.

Also read: Sydney housing prices jump after rate cut

Mistake 8: Having no bidding strategy

Your gut feeling isn’t necessarily going to be the best guiding hand in the auction process, so it’s best to have a clear bidding plan before you arrive.

For instance, you might want to break your bids down into small amounts to slow the auction pace down, or come in with a big surprise bid to try to knock out the competition. Just make sure you workshop it beforehand but don’t flip out if the auction doesn’t go exactly to your plan.

Mistake 9: Attending with friends or family

The most important thing to do at an auction is to stay calm. So unless it’s a trusted family advisor who knows and respects your bidding limit, it’s best to keep loved ones at a distance until afterwards.

Mistake 10: Not using body language

Getting a mental edge over other bidders can play to your advantage so go in with a plan to

Try arriving early to get a prime spot with a clear view of your competitors and dress to look like you’ve got the cash to win the bid.