Over recent years, I’ve attended so many auctions that I’ve lost count! And during this time, I have probably encountered every bidding strategy there is.
I’ve been able to examine which strategies can help you win, and those that might reduce your chance of achieving your goal.
Whether or not you win at an auction can be strongly influenced by your actions. The reality is that for many people bidding at an auction, it’s the first time they have been in that environment and they don’t quite know what to expect, or what to do.
So, strap yourself in and read on to see my top tips to maximise your chances of being the winning bidder at an auction.
Before I bullet-point you to death, here’s the underpinning principle of my guide – I firmly believe that a bidding competition between several people can be as much about body language and mind games as it is about who has the most money. Sure, it helps if you have the biggest budget; however, the reality is that no one knows the size of their competitions bank account anyway. So, the key thing is to make the other bidders believe you are more committed than them, have more money than them, and that you are willing to outbid them regardless of what they do.
How can you achieve this? The answer to that question lies in the following list. Follow this guide to the letter, and you will increase your chances of success considerably.
Things NOT TO DO when bidding.
My ‘twelfth round knockout blow’:
If you detect someone you are competing with is running out energy for the fight there is something you can do which will often knock them out of the contest. If the bids have reduced to smaller amounts (say $1000 – $2000), reply with a stronger bid. So, when they bid $2000 to stay in the battle with you, respond with a $5000 bid. No rule says you have to match their bid amount, and it is incredibly disheartening for the other bidder when you force them to dig deeper than they want to. You are effectively pushing them faster towards, or beyond, their limit. They may reluctantly try one more small bid to see if you are bluffing (say $1000). Hit them straight away with another $5000! Remember, this strategy is still operating under your available budget.
If there is any contingency in your budget, be ready to use it. This is the extra bit that I believe every bidder has talked about before an auction. You don’t want to go there, but will if you absolutely must to secure your ‘dream property.’ If you have moved into this budget zone, make sure you are the only one that knows. Your bidding technique should continue to be relentless.
That’s it! Follow these few simple tips, and you will give yourself the best chance of success. By the way, the first time I saw this method used successfully was at my first auction around 15 years ago. I was the buyer. After winning the auction and signing up the ‘Sale & Purchase Agreement’ for my new home, the agent representing the bidder I ‘went to war with’ came and asked me how much further I would have gone. I announced to him that I was at my limit and that if his buyer had bid even another $1000, I would have walked away. He was staggered and let me know that his buyer had another $100,000 available but had given up because of my overwhelming bidding confidence! True story.
I hope you have enjoyed this article, and take away some valuable tools to give you the best chance for success when bidding at an auction. This won’t work every time, as you may just come up against someone that is prepared to spend more than you can afford. What this guide does, is give you the best chance within the budget you have available.
I welcome your contact if you would like to discuss this strategy further, or if there is anything else you would like a talk about.
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