Buyer Advocates Disclose Smart Property Auction Tips And Tactics

An auction is considered one of the quick ways of closing a deal for a property purchase. In certain areas, property auctions are done on a monthly basis and potential buyers troop to the event in the hopes of getting the best deal for some of the most attractive properties in the market. The thing about these events is a lot of people come and they’re at a loss when it comes to the actual market value of the properties up for bid. At times, the first bid is just way off so there’s not a lot of “give” to the prices and many who actually came to buy get played.

It’s because of such dynamics that buyer advocates of PK Property have decided to disclose savvy tips and tactics for bidding at property auctions. They know how the game is played by the organisers of the event, the auctioneer, and seasoned bidders, and it puts real buyers at a disadvantage, so with these tips and their assistance, buyers can protect their budget and actually walk away with a good deal.

The first tip is to recognise that the process can be an emotional one. So many bidders come and use their heart instead of their head that they actually become reckless in bidding, making them easily the ones that get played. They bid beyond the fair market value and completely forget the original goal of securing the best deal.

Second is to be somewhat inconspicuous – stay at the back part of the room so you can observe the action or the bidding atmosphere. This tactic will allow you to see when the bidders are reaching their limit and determine the most ideal time for you to rise out of nowhere and place a strategic bid – meaning you still remain within your budget, although it’s a higher amount than earlier placed bids.

The third tip is to give the auctioneer respect, but remember that it’s your money and when you’re up bidding, you’re in a position with the amounts that you’re comfortable with, the denominations that you’re comfortable with. A lot of times the auctioneer starts off with a really steep amount but you’ve got to take your chance with the amount you have even if it’s lower than the initial price presented. There are many layers to an auction and not too many people know that the last bidder – the one with the highest bid – does not always walk away with the property. In some instances, there are certain conditions presented after the auction that the last bidder may not be agreeable to leaving the property with no takers. You may just find the same property up for auction again and the start off price can be significantly lower and more within your reach.

The last tip is this: patience is a virtue. Just take your time, not every opportunity outside your budget is lost once the auction is over. The real estate market is not as simple as that. There are so many terms and conditions that are not presented during a property auction and not all top bidders are instant takers, so if you really have one property in mind that’s still in the market even after being auctioned off, get your team ready for some powerful negotiating. PK Property negotiators and buyer’s agents are highly experienced and that property may be yours at a much lower price than you initially expected.