Wise up and bid smart at auction
The property auctions can be a great place to grab a property bargain. But you have to know what you’re doing. Simple tips like sticking to your pre-agreed maximum and knowing the full costs involved can save you a lot of misery. But what else do you need to know? First things first. Contact the auction house a day before the auction to see if the property has been withdrawn. This is bad luck if you have paid out for surveys and fees as you are not entitled to damages, but you can save yourself a wasted journey. Free auction guide and tips for bidding at a property auction.
Once in the auction room, make sure you hear the auctioneer’s opening speech. This means you will know the format. You’ll also find out about any withdrawn lots or any changes to the catalogue, about the permitted bidding methods and how to submit your details if you win. About bidding Make sure you know all the costs involved before you bid. These costs include solicitor's fees and outlays, arrangement fees and mortgage indemnity guarantees.  If you don’t consider these and many other costs, you’ll be one of the thousands of people who pay too much at auction, thinking they are getting a bargain. So what’s the best way to bid? Make eye contact with the auctioneer when you bid and until your bidding is at an end. To bid, you can raise a finger, wink or flick your catalogue. If you want to bid in a lower increment, e.g. £500 instead of the £1,000 being asked by the auctioneer, shout your bid clearly. Once you’ve stopped bidding, you can stop looking at the auctioneer. Simply shake your head the next time he/she looks at you. Want to come back in later? Make it obvious by catching his eye and using a deliberate bidding action. First sin It goes without saying that you should never bid higher than your pre-agreed price ceiling. To do so would be to commit the first sin of the amateur bidder. Many people believe that standing at the back of the room means they have a better view of what’s going on. Try it: if it works for you, fine. Wherever you stand or sit, you should try not to draw attention to yourself - rival bidders might use you as their bidding strategy. A useful tactic to discourage other bidders is the Jump Bid. Here, you simply warn the auctioneer and then shout out a figure higher than the auctioneer has called. This strategy can blow more-timid bidders out of the water. A similar tactic is to shout out a figure close to reserve, very early on. Reduced bill Another nifty trick is to lower the auctioneer’s increments - this can reduce your final bill. Remember, it’s in their interest to keep the price as high as possible. Off-the-wall bids come into play when the bidding has stopped more than one increment below the reserve. The auctioneer makes these bids himself so that the property will reach reserve. If you can spot that the auctioneer has done this, you’ll know there’s no competition for your bid. If a property does not make its reserve, you can still talk about it with the auctioneer and the seller afterwards. It could still be possible to reach agreement. There are investors who will aim to buy only unsold lots. Approach the auctioneer with an offer that is above the final bid, and they will try to help you. You’re in a strong position here and might get the property for less than the reserve.