With everything that has happened in the property market last year, it comes as no surprise that online auctions are still going strong in 2021. There are certainly some benefits to the online method: you can attend from no matter where you happen to be, no need to battle the unpredictable Melbourne weather and you can even bid from the comfort of your own couch.
Over the years we’ve provided numerous tips on bidding at auction and how to be prepared to have the winning bid. Exclusively online auctions have changed the landscape a little though.
Before you attend any auction, online or in person, make sure you’ve done your research on the area and are confident with your price. This means knowing what similar properties in the area are selling for. It’s important not to get over-excited and a) spend more than your budget or b) spend more than the property is worth.
Get comfortable with the bidding process, what the bidding increments are and what you can expect on the day. You can watch recordings of auctions and even attend auctions in person to get a feel for how they play out.
Nailing the online auction
Whilst this may come as a surprise, online auctions and bidding via proxy are not actually new concepts, even for property purchases. Long have people phone in bids or watched auctions online. 2020 was simply the first year auctions were held exclusively online. In order to do well and be the winning bidder, we suggest:
- Make sure you’ve really established your limits and bidding strategy as it’s much harder to have a quiet word to your parents/partner etc as you’re all ‘facing’ each other.
- Stick to your game plan … just like online shopping, sometimes you can feel a little bit freer with your funds because it’s from the comfort of your couch.
- Watch a couple of online auctions beforehand so you’re comfortable with the format
Success at in-person auctions
Whilst being at an auction physically can be a very different experience, the main premise of the situation stays the same:
- Identify your competition so that you can keep an eye on who is bidding.
- Don’t be afraid to start the bidding! If you’ve done your due diligence and you’re ready to buy, there’s no harm in being confident.
- Don’t hesitate; you have a budget, you’ve done your research, you don’t need to think about it on the spot, all the thinking should have been done so go with the intention to buy.
When there are online bidders at your in-person auction
This can be tricky as you may not know there are people online who are attending the auction and accordingly can’t see what they are up to. That said, just stick to your game plan. Whether there is another bidder online or in person you know what you’re there to achieve and can simply execute your plan on the day.
Don’t have a game plan or not sure where to start? Entourage Property offer a BYO Property option or Bidding Service to help get you into your new home sooner. We provide you with everything you’ll need to walk away from the auction knowing you’ve executed your plan perfectly.