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Top strategies for winning at auction

Buying a property on your 2023 to-do list? Make sure the keys to that dream home are yours with these winning ways

By Sara Mulcahy
Wed, Jan 25, 2023 9:15amGrey Clock 3 min

 Always part of the crowd but never the winning bidder? It can be frustrating  to keep missing out on securing your slice of Sydney. 

When you have your heart set on a property, you’re buying not just a home but a lifestyle that will champion your dreams and ambitions. So no wonder auctions are a nerve-racking affair. Put yourself on the front foot with these winning strategies.

Read more stories like this in the latest issue of Kanebridge Quarterly magazine. Order your copy here.

1 

Put in a pre-auction offer

Actually, there may be no need to go to auction at all. In today’s market, you have a good chance of calmly negotiating a winning deal ahead of time. Of all properties intended for auction, the proportion sold prior has roughly doubled since last year, now accounting for about half of all sales. So if you’ve done your research and don’t want to wait it out, make a solid pre-auction offer that reflects current market values.Conversely, in a strong market, you may be better advised to wait it out. Vendors are unlikely to take an early offer if they know there are other buyers waiting in the wings.  

2 

Own it to win it 

Show up at the auction dressed to impress and stand in a prominent position where you can eyeball other bidders. When people bid against you, respond quickly and decisively. Play your cards right and you’ll give your competitors the impression that you’re not going to stop – which may be enough to convince them to give up. 

3 

Bidding anonymously

Bidding remotely via a live auction app could be the solution to staying calm and clear-headed. The future-forward UrbaneLIVE app enables you to participate in live-streamed auctions from wherever you feel most comfortable. If you’d rather be on site, but feel uneasy about bidding publicly, you could use the app to bid anonymously. The app will also ensure you don’t miss out on the chance to bid if you’re out of town on auction day. 

4 

Use the professionals

Your agent is there to help. They offer advice and support as well as practical information about the auction, so take advantage of their expertise and ask as many questions as you can. Worried you might get caught up in the emotion on the day? Asking a seasoned auction goer to bid on your behalf will make you less vulnerable to auction day pressure. (If you’ve recently sold and have a good relationship with your agent, you could ask them to help you bid for your next home, provided the property is listed with another agency.) Alternatively, a buyer’s agent will bid on your behalf for a fee and help research the market and work with you to determine a reasonable limit. 

 

5 

Top-and-tail approach

Beyond the comical awkwardness, there’s little benefit in holding out on an opening bid. Before the crickets chirp and tumbleweed rolls, make your presence known with a reasonable low-end bid. You can then hang back and get a feel for your competitors, before boldly re-joining the bidding at the pointy end of the auction. If nobody else bids after your opening offer, even better. You’ll be first in line to negotiate a deal. 

6 

Hit them with your best shot 

When bidding slows, hopeful purchasers often settle in for a lengthy back-and-forth of $1000 increments. With amounts this small, it’s tempting for bidders to keep pushing that little bit further. If you still have some room in your budget, try knocking them out with an offer of $15,000 or $20,000 more. In the context of Sydney or Melbourne property, it’s a small price to pay to secure a purchase. There’s no better place to pick up tips than at an auction. Onlookers are always welcome so check out our auction listings and drop by to watch the show.

 



                                

                                
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The Australian capital setting a new record for property value falls

Property values have fallen hard and fast in this popular city, but it’s done little to dent pandemic rises

By KANEBRIDGE NEWS
Mon, Jan 30, 2023 2 min

Highest property values, biggest dip the next. That’s the outcome for Australia’s northernmost capital on the east coast, with Brisbane property values recording their largest and fastest decline, data from Corelogic reveals.

The fall comes just seven months after values hit their peak after a population surge driven by the pandemic saw an increase of 43 percent. Home values hit a record high on June 19, 2022 but have since declined 10.9 percent, in parallel with eight consecutive interest rate rises since April last year.

Historically, peak-to-trough declines in Brisbane have lasted 14 months and have ranged from value drops of -2.9 percent to -10.8 percent. While the new record is just -0.1 percent compared with previous figures, that fall came over 21 months between April 2010 and January 2012. The latest decline was a much swifter seven month drop.

CoreLogic head of research Eliza Owen said it is worth putting the Brisbane figures into context with the rest of Australia’s capital cities, as well as considering the significant rise in property values in the Queensland capital over the pandemic.

“Brisbane now stands out as one of two capital city markets with record declines, the other being Hobart,” Ms Owen said. “Sydney continues to have the largest peak-to-trough falls of the capital city markets (currently at -13.8 percent), while peak-to-tough falls remain mild in some cities (such as Perth, where values are down just -1.0 percent from a recent peak in August 2022).” 

“The record fall in Brisbane home values has not made much of a dent in the gains made during the upswing. The fall in the Brisbane daily HVI follows an upswing of 43.5 percent between August 2020 and 19 June 2022, which was the fastest trajectory of rising values on record. This leaves home values across Brisbane 27.9 percent higher than at the previous trough in August 2020.” 

The median dwelling value in Brisbane jumped from $506,553 at the start of the pandemic in March 2020 to $707,658 by the end of last year, Ms Owen said.

“Despite the large decline from peak, Brisbane maintains the third highest gain in value of the capital cities since the start of the pandemic,” she said. 

“Only Adelaide and Darwin, which are 42.8 percent and 29.6 percent higher respectively than at the onset of the pandemic, have performed stronger. 

“For this reason, there is marginal risk of negative equity for Brisbane homeowners, with the exception of very recent buyers, who purchased around the peak in June 2022 with less than a 20 percent deposit.” 

However, there are signs of resilience in the market. Brisbane remains a more affordable option compared with the other east coast capitals, Ms Owen said.

Although housing values remain higher than pre-COVID levels, Brisbane retains a lower price point than Sydney, with a $435,170 difference in median house values and $280,749 difference in median unit values,” she said. 

“The gap between Brisbane and Melbourne housing values is also significant, with a $119,697 gap between median house values and $97,692 difference in median unit values.

“This could encourage ongoing housing demand from those willing to migrate to the state, or own an interstate investment.” 

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