How to bid at an auction

How to Bid at an Auction

You’ve spent months researching the market and attending open for inspections, and now it’s time to get down to business.

Auctioneer Damien Cooley in action at 3 Cooper St, Double Bay. Picture: Jenny Evans

Chances are, if you’ve committed to attending an auction, you will have already spent a lot of time visualising how your new life inside that property might look – and the future of this dream-like fantasy is what’s at stake when you pick up your paddle.

Add in the natural pressure associated with competition and it’s easy to understand why auctions are often fraught with emotion. Which is why it pays to be prepared.

With that in mind, we asked Damien Cooley, managing director of Cooley Auctions, to break down how buyers should bid at auction.

1. Pick up your paddle

Regardless of whether your state requires you to pre-register, you will need to show ID to the selling agent on the day of the auction, so that they can take down your details and hand over a paddle.

You will need to show the auctioneer your paddle every time you bid.

2. Watch body language

Once you have your paddle in hand, stand in a position that allows you to keep an eye on the competition.

According to Cooley, non-verbal cues offer valuable glimpses into a rival’s buying power.

“One of the biggest mistakes buyers make is they don’t watch their competition,” he says.

“If we’ve got a bidding sequence that’s going $800,000, $810,000, $820,000, and it slows down, and a buyer tries to go $825,000 and they’ve got their mum and dad with them and they’re all looking at each other and having a conversation – there’s a very good chance that that buyer has reached their limit and they’re discussing with the family whether they’re out, or whether they should go another $5,000.”

In the event such a buyer comes back with “a desperation bid of $5,000″, Cooley recommends immediately placing a higher bid – a signal of intent that he likens to a knockout blow.

In Cooley’s mind, the worst thing a buyer can do is not place a bid.

3. Control the tempo

Momentum plays a big role in determining the outcome of an auction. Generally, the faster the bidding, the more likely buyers are to get swept up in the emotions of the occasion and feel pressured into placing higher bids.

Cooley therefore recommends bidding in odd increments, so that the auctioneer is forced into doing more challenging arithmetic.

“If the auctioneer is asking for a $10,000 bid, you can give them $13,000,” he says. “Give them a few curly numbers. You’ll be surprised by how many auctioneers will struggle to add them up. That will slow down the bidding.”

If you kick-start the negotiation, “start with $795,000, instead of $800,000, as that makes it easier to get the bidding going in $5,000 bids,” Cooley adds.

4. Bid confidently at the end

If you’re competing against a high number of bidders, you might decide that starting the auction with an aggressive opening bid is a good way to determine who the real competition might be.

But in a softening marketing, Cooley says it’s safer to pull your punches until the end draws near.

“I would say it’s more important to bid confidently at the end of the auction than it is at the beginning,” he says.

“The reason being is you don’t want to… send a message too confidently to the agent and auctioneer that you’re willing to buy at any cost. Sometimes that can work against you.”

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5. Launch a charm offensive

In any negotiation, it always helps if the key players like you.

Which is why Cooley suggests exchanging pleasantries with the agent and the auctioneer prior to bidding.

“Don’t be afraid to introduce yourself to the auctioneer before the auction,” he says. “Use the agent’s and auctioneer’s names and be a good person.”

The way Cooley sees it, getting in the auctioneer’s good books can only improve your prospects.

Analysing your rival bidders’ body language is crucial to success. Picture: John Fotiadis.

6. When a property passes in 21

In most states, if a property passes in (i.e. is withdrawn from the auction after failing to meet the vendor’s reserve price), the highest bidder gets first right to negotiate a price with the seller.

When this happens, buyers shouldn’t fall into the trap of thinking that they’re the only person interested in buying the property, and that the chips are entirely stacked in their favour during the ensuing negotiation.

While the property might have failed to meet its reserve at auction, other buyers will likely attempt to buy it if it goes back on the market – and a seller is highly unlikely to budge on their reserve, according to Cooley.

“There’s a misconception that buyers are bidding against themselves when a property passes in… but that’s not the case,” he says.

“Ultimately, what’s happened is the auction has got the point where it’s stopped. Your price is not a price the seller will sell at. Full stop. It’s no more complicated than that.

“If you want to buy the property, you will have to increase your bid…. don’t be unnecessarily tough during the negotiation.”

Auctions can be high-pressure situations where it’s easy to get swept up in the drama – and if you’re not careful – pay more for a property than you had planned.

But luckily there are a handful of strategies buyers can use to help secure the property at the lowest price.

How to take control at an auction

Although local market conditions and the property’s fundamentals have the most significant impact on the price, controlling the bidding can affect the final result, according to Lauren Goudy, buyer’s agent at Rose & Jones.

How to Bid at an Auction Raising the gavel is intended to convince bidders that the property is about to sell. Photo: Jacky Ghossein

She suggests buyers arrive at the auction early to choose the best vantage point, and more importantly, determine how many bidders are registered.

“If there are 20 bidders, you might decide to open with a strong bid to knock people out,” she said, explaining that an opening bid above the maximum price of most buyers can immediately shrink the bidding pool.

Bidding increments can set the pace

Data from auction streaming service Gavl has revealed the average increment between bids at auction is $10,418, and the most common knockout bid is $10,000.

But according to auctioneer Damien Cooley, avoiding round numbers is a strategy that can work well for buyers.

“If you are able to change the pace of the auction by bidding in odd increments it keeps your competition guessing, and it makes it more difficult for the auctioneer to add those numbers up,” he said.

Auctions thrive on momentum, and Mr Cooley said controlling the pace of bidding is the key to keeping the price low.

“If you want to control the increments, the first bid you make can be under a round number,” he said. “Don’t start the bidding at $800,000. Start at $795,000,” he added, explaining that bidding will then be more likely to continue in increments of $5000 rather than $10,000.

But he said bidding big is important at the business end of the auction. “Let’s just say your limit is $850,000, and the bid is at $840,000 and they’ve been going up in [increments of] $5000, go straight to $850,000.

“It shows confidence, and at least you get the chance to put the bid in at your maximum amount.”

Similarly, when it comes to setting the budget, Ms Goudy recommends aiming slightly above round numbers. “Most people decide in $50,000 or $5000 increments,” she said. “If you decide that $850,000 is your budget, then you could go to $853,000 or $856,000, but it’s a decision you need to make before you start bidding.”

Pay attention to body language

Understanding how bidders behave at an auction can reveal when a buyer is reaching their limit.

Couples are guilty of some of the biggest tells, which can include having a discussion mid-auction, making a phone call if the other partner isn’t present, or even making eye contact with each other.

According to Ms Goudy, basing your maximum bid on due diligence rather than emotions, having confidence in your decision and being prepared to walk away are the keys to controlling these signs.

“If you go to the auction with conviction, it will show in your body language and your competitors can read it too.”

Mr Cooley said reading the body language of the competition allows buyers to know when to deliver a knockout bid.

“If they look at each other, that’s a sign that they’ve come to the auction with a preconceived number, and they’re either at that number or they’re close to it,” he said. “That’s the point where you as a buyer should increase your increments.

“It might take that buyer 30 seconds or a minute to make the bid, and they’re hoping you won’t bid again. If you’re able to crush their hopes immediately with a counter bid, it sends a message to them that they are not going to buy it.”

Don’t fall into the auctioneer’s traps

Mr Cooley said auctioneers use certain techniques to get buyers to keep pushing the price up.

“Calling the property ‘first, second, third’ is an urgency tool that we use to encourage a bid out of somebody,” he said. “When you’re a registered bidder, you automatically get that fear that you’re going to miss out.”

Mr Cooley said auctioneers use their own body language to encourage another bid by making buyers think the property is about to be sold.

“The grabbing of the gavel makes people think I’ve met the reserve and we’re about to sell,” he said.

Ms Goudy suggested inexperienced buyers may want to avoid bidding altogether to prevent mistakes in the heat of the moment.

“If you are intimidated by the auction process, your best strategy might be to get someone else to bid for you, whether that’s a professional, mum or dad,” she said. “You need to ask someone who is experienced not only in auction bidding, but also in the market.”

BIDDING at auction takes strategy, skill and a few clever psychological tricks. Here’s how to give yourself the best chance of winning.

March 13, 2017 7:16am

Tips on how to bid at an auction

The psychology of auctions and tips on how to bid. Source:News Corp Australia

BIDDING at auction is like a sport. There are competitors, spectators, an umpire, game plans, and in the end, there are winners and losers.

It isn’t as easy as turning up with a price limit in mind and calling out some numbers. There is actually a lot more strategy, endurance and psychological tricks involved, reveals Damien Cooley of Cooley Auctions.

Auctions are touted as the most transparent way to sell a house — and they are. The open market determines the price, rather than a closed door deal between a seller and buyer.

But auctions also thrive on momentum, which is why you can turn up confidently only to be left in a spin within a matter of minutes because the property you thought was in your price range just sold for money you can only dream of.

“When an auction has momentum it can sell really well and a buyer can, in many cases, find themselves in a scenario where the bidding started at $800,000 and all of a sudden we are at $965,000,” Mr Cooley told news.com.au.

“What that means is the buyer needs to act quickly and make fast decisions — and it is those spur of the moment decisions where the auctioneer’s role is to get that buyer to continue bidding.”

HOW TO THROW YOUR OPPONENT OFF

Sounds intimidating, but Mr Cooley says there are a few sneaky tactics that a buyer can employ to slow the momentum and steady the decision making — much like the captain of a sports team can slow the game if it is getting sloppy.

An effective way to do this is to bid in odd increments and call our your actual bid, not the total price.

“If the auctioneer is asking you for $10,000, there is no reason why you can’t give them $13,000. But don’t call out the number you want it to land on, call out the increment you’d like to bid in,” Mr Cooley said.

“If the auction is at $920,000 and you bid another $13,000 that is easy to add up but what about if you made another bid of $18,000? And don’t say $951,000 because that is easy for the auctioneer. If you just call out your bid of $18,000 the auctioneer has to think about it add that up in their head.”

And it’s not just about slowing the pace of the auctioneer; this tactic also throws other buyers off, slowing momentum even further.

“Most buyers will land on a round number, so most bidders will go to auction saying we are going to pay $900,000. That’s their limit and they won’t go over it, it is a psychological thing .”

Damien Cooley of Cooley Auctions said bidding at an auction is like a sport: it takes strategy and skill. Source:News Corp Australia

When bidding at an auction you also have to adjust your strategy accordingly; every auction is different. For instance, the amount of competition you have really matters.

For a lot of competition at a large auction, Mr Cooley said you have got to be confident and aggressive.

“If you can see there is a lot of competition then you are going to have to bid aggressively. I would argue that the best way to bid in that scenario is to come in with a really aggressive bid first,” he said.

“This is firstly to show your confidence but also and if an agent has quoted $1 million and you know you’re willing to pay up to $1.35 million, I guarantee you that some of your competition are thinking it will go for between $1.25 million and $1.35 million. So there is no point starting the auction at $1 million and giving everyone hope.

“In that scenario I would come in with a strong bid at $1.2 million and that will send an immediate shockwave through every single person at the auction and it will stun them that someone has started the bidding so high.”

WHEN TO KEEP YOUR COOL

On the other hand, if you can only see there is one other registered bidder, then Mr Cooley said to play your cards a little bit closer to your chest in that same scenario.

“I might start the bidding at $950,000 and let the auctioneer tell me if they are happy to accept it or not. If they say no then you can guarantee that the owner is not selling at that price. And that’s okay, that’s not offensive.

“So if they the auctioneer said no, sit back and see if anyone else bids. If they don’t the auctioneer may use a vendor bid. If they do make a vendor bid, you then need to consider if you want to bid above that or get into a negotiation.

“You have to remember that if you don’t make a bid, the post-auction is open to any bidder but if you’re the highest bidder, you have the first opportunity to negotiate with the seller. So I’d always recommend that a buyer bids above that vendor bid — assuming they are happy to pay that price for it.”

WATCH FOR BODY LANGUAGE CUES

Competing at auction isn’t just about how you present yourself. Just as important is keeping an eye on your opponent.

“It is important to watch what your competition is doing because their body language will tell you a lot about how much further they are prepared to go,” Mr Cooley said.

“Stand in a prominent position where you can see what your competition is doing — their facial expressions, body language, and whether they are talking. ”

And the same goes for your actual auctioneer, he said.

“This is important because every auctioneer calls an auction differently. You should research them and watch how they trial close, watch their speed and watch the little things they do and say . I’m always actively looking to convince bidders to bid particular numbers because I’m thinking three or four bids ahead of what the number is I’m asking for.”

If you’re wondering how to buy a house at auction, be warned! Buying a house at auction is an “adventure,” says Nedalee Thomas, a homeowner in Orange County, CA—and she should know. Thomas, a former Realtor®, was a buyer who purchased her three-bedroom HUD home through a stressful, fast-paced auction process.

“My prayer was, and had been for many years, that I would get a home at a discount,” she says. And so, as a buyer, she did: The auction process netted her a dream place well under market price. She paid about $250,000 for the property—an astonishing deal, especially considering that nearby homes without a lien go for nearly double.

In the four years since she bought it, the home’s value has increased by $200,000. “I never expected that,” Thomas says.

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Homes sold at auction are typically in pre-foreclosure, foreclosure, or have some type of lien on them because the owner fell behind on their home loan with their mortgage lender. As a result, the properties are often in distress.

Looking to become a bidder and score a sweet real estate deal of your own? Auction homes provide a number of benefits, but the process seems designed for a certain adventurous kind of person, since many of the homes don’t qualify for a mortgage. Here’s what to know going in.

How to buy a house at auction

The best way to bid on a house at auction as a buyer? Be patient and brave. While Thomas says she would buy her home through an auction again “in a hot second, absolutely,” the process was long and arduous.

One of the biggest differences between buying a home at auction and the traditional route? You don’t get to go inside the home before submitting an offer. Many homes are in bank-owned and in foreclosure. Another biggie: You can’t get a mortgage or use a lender. That’s right, real estate auctions are all about cash.

Before she put in her bid, Thomas looked at the exterior and peeked through the windows of the property for sale. The next day—after submitting an offer—she returned for a thorough walk-through.

“It was trashed on the inside,” Thomas says. “They had taken the shower-heads, the light fixtures, and the fronts of the cabinets. The kitchen window had been painted lavender.”

But Thomas likes a challenge, so she kept moving forward.

The bidding process can be interesting

Once she had submitted her purchase price bid for $251,551.51 (a highly specific number, chosen partly because it was a hair over $250,000 and set her apart), she had to wait three days for an answer.

“I thought nobody would outbid this crazy number,” Thomas says. Still, they did—but then, one by one, the higher bidders either dropped out or were disqualified. Soon, the real estate she bid on was hers.

Some home auctions involve bidding in person, while others involve an online auction where you can view the property and compete directly against other potential buyers. But buying a foreclosure “as is” means you may end up with a bad roof and a useless basement. Plus, real estate investors flock to these listings, offering high, all-cash bids, not a lender in sight. Even if you’re bold, you may have to unleash your inner gambler to win the home.

You should never buy a house at auction if you.

. have a very specific vision regarding what your future home should look, feel, and smell like (homes with a lien or in foreclosure are often neglected). If you have some very particular, intractable ideas about what you want and need, skip the auction.

Picky buyers may find themselves stranded in a sea of not-quite-right listings at an auction house. You have to be willing to accept that you might not get the four-bedroom ranch of your real estate dreams. The kitchen probably won’t have an open layout. You might have to prepare for wood paneling.

Thomas had only three requirements: “I wanted a home at a discount, I did not want to fight for it, and it should have a view,” she says. “I got all three of these things.”

No, Thomas didn’t get quite everything she asked for. Her auction home is located on a lake, but a previous owner had installed a bedroom closet that blocked what should have been a stunning view.

“I joked that the closet had a lake view,” she says. To fix it, she changed the home’s layout to make room for a window.

Make sure to do plenty of research on the market

Any time you’re buying a home, you need to do your homework. But those rules are twice as important if you’re considering how to buy a house at auction, especially if you’re attending a live auction, where excitement and emotion can cloud your judgment.

At the first auction Thomas attended, shortly after the housing crash, she decided the property wasn’t worth the cash.

“I absolutely guarantee you that the price they paid was more than it was worth,” she says. Two bidders went back and forth six times before the price was settled, and “the reason the other people weren’t bidding was because it started out too rich in the first place.”

Even if you’re not planning on attending an in-person estate auction, a thorough understanding of the market in the area you’d like to buy is essential. Even HUD real estate auctions move quickly, and you’ll probably need to put a bid down on the spot.

“You need to look at comps,” Thomas says. (Comps are comparable sales, or similar houses recently sold in the same area.) “You need to be aware of what the value in the neighborhood is.” Also, research what other foreclosures went for.

You can use realtor.com’s Local search to understand what similar houses are worth.

Make sure to budget (time or money) for repairs

Remember Thomas’ missing shower-heads, light fixtures, and cabinets? All of that needed to be repaired—and that comes at a price. She originally budgeted $35,000 to get her new home into shape, but she ultimately spent about $85,000 on rehab.

And cash isn’t the only precious resource spent in a renovation. Thomas spent nine months living in her office while construction crews worked on her new home.

Despite the long wait and the huge expense on repairs, Thomas says buying her home at a real estate auction was a fabulous experience. But homeowners looking to buy a house at auction need to be prepared for the pitfalls—and having an adventurous spirit won’t hurt.

Watch: 3 Types of Homes First-Time Buyers Should Avoid

Bridget Galton

Y ou have unearthed a potential treasure and want to buy it. What are the experts’ tips for securing the item at an online auction?

1. The estimate is just an indication

Remember, the estimate is just that, merely an indication of what the piece is worth. If lots of people want the item the cost can spiral, but if fewer are interested you might bag a bargain.

2. Do your research

Get as much information about the item before you start, read the information carefully in advance and don’t be afraid to email the auction house in advance for more photos or information.

Who is the artist? Is a painting signed or unsigned? What are the proportions? Will it fit through your front door or in your living room? Check where and when your auction item was made: the original Eames chairs were made in 1956 but have been in constant production under licence ever since. Remember, you are buying something old and it will inevitably have chips or cracks.

3. Choose your limit

Decide your limit before the bidding starts, or as Pontus Silfverstolpe of Barnebys says, “Follow your wallet not your heart. You can get emotionally caught up in the thrill of the moment and continue bidding beyond what you can afford. Say to yourself: ‘What is this item worth to me?’”

4. Look out for extra charges

Check additional charges before you bid. Auction houses usually charge 15-25 per cent commission on top of the hammer price and some online bidding platforms charge 3-5 per cent to use them. In those cases, you may want to avoid the charge by arranging to bid via telephone.

5. It is a contract to buy

Remember, when the auctioneer bangs the gavel down at the end of bidding, it establishes the hammer price and it is a contract to buy.

6. Place an absentee bid

According to Barnebys UK managing director Lotta Lindquist-Brosjo: “To be sure and feel secure” place an absentee bid. This authorises the auction house to bid on your behalf to secure the lot at the lowest possible price.

You register the maximum hammer price you are prepared to pay, then the house places bids in increments until your limit is reached – or hopefully before.

7. Keep an eye on the deadline

Some auctions work in a similar way to eBay where the bidding process runs over days, hotting up as the sale deadline approaches. You receive email alerts as other bidders top your price, but Ms Lindquist-Brosjo warns: “In the last two hours the price can explode”.

8. Pay up quickly

Once successful, you will have 5-10 bank days to pay and make transport arrangements for your piece of treasure. It’s worth doing this quickly as some auction houses charge storage fees after a few days.

9. Go with your heart

What to buy? Buy with your heart, then you are more likely to enjoy the item and keep it longer.

10. Remember the date

Don’t forget to note the date and time of the sale, so you are sure not to miss it.

Online auctions have shown great success in the past few years as this concept of bidding is fast-tracked on Internet. Firms set auctions for their limited products like Domain Names, Cars, Lands, Houses, Art, Furniture, Antiques, etc. and customers can bid online directly from their home computer.

This is more comfortable than those traditional auction methods where you need to go to some specific places to put your bid for any product. Online auction process makes it super-easy for customers to bid for multiple products at the same time but do not think winning any bid is going to be easy.

How to Bid at an Auction

For a good product, there could be hundreds of online bidders other than you who are bidding to win the product. Even if there are many powerful tools which automatically put bids on bidder’s behalf so that they can win bid at lowest price possible. Some of them are: EZ Sniper for eBay Auctions, Godaddy Auction Sniper for domain names etc.

Even for online betting, there are tools which provide different ways to control what your bot does. A worthy destination is Ladbrokes. You can get promotional code for Ladbrokes website. They also have mobile apps for almost all the devices.

These factors increase competition and make it very tough for ideal bidders to win bid for a popular product. So, here are few tips for those online bidders who are struggling for winning bids on eBay, Webidz, Auction Warehouse, Godaddy or any other online auction portals:

1. Do Research First

Research task becomes very important if you are a newbie in online bidding. Always go for legitimate sources (who are serving bidding from years to thousands of users) to place your bids. Find at least 2-3 reputable sites which are providing auction for similar products, take a look to earlier sold products, their popularity (number of bids), winning price, etc.

2. Set A Limit

For a desired product that is available for bidding, make a clear idea about how valuable the product is for you. Bound yourself with the limit of “what maximum price you can pay for the product!”. It will prevent you from getting caught up in excitement of auction and spending more money than your profit margin.

3. Take Advantage of Mistakes

If a product’s category is popular then for every product listed in that category in auction will have lots of bidders who can pay more price than you can afford to bid for the product. So, the tricky way is to take advantage of sellers’ mistakes. Search for misspellings for search keywords (for example, Domain name vs. Doiman name, Spanish vs. Spainish, etc).

Sellers often misspell keywords in their auction titles and those auctions may not appear in typical buyer searches hence giving you chance to win similar products at low bidding price. If you search for compound keywords such as candleholder or backpack, try to break it into two separate words like candle holders and back pack.

Not-so-popular (but trusted) auction sites can also be used to take advantage of less exposed bidding. You will have less competition at those places and you can win a bid for similar product at considerably lower price.

4. Take Advantage of Time

All international bidding sites provide 24 x 7 bidding service. So, people can bid at any time but not all people worldwide are interested in your product category, there will be only some specific countries. Know them, find out their less active hours/days for bidding (by observing sold products’ bid history), find the product having its bid ending at that time.

These products will have less competitors and hence, you can win a similar product from auction at very low-cost.

5. Bid at Perfect Time

Don’t put early bid for any product hours before its ending time. It will increase competition for the product, make other bidders to place even more high bids and increase winning price for your bidding. Wait, and bid at the last moment. It will not increase any competition and other bidders will not get chance to put any high bid.

Auction software are configured to bid even at last 5 seconds. So try to bid at the last moment in which you can complete placing your bids.

6. Does the site has proxy bidding system?

Auction sites like eBay, Sedo, etc. provide “Proxy Bidding” software to make it very easy for bidders to place bids. Just set the highest bidding amount for any product and sit back. Now, the tool will automatically place lowest possible bid for the product on your behalf while making sure that you’re the winning bidder and the bid is in range of your highest bidding amount.

Even if any bidder puts higher bid, this tool will overbid him at the lowest possible bidding amount. No one knows your highest bidding amount for the product so there is not any danger of seller to sell the product in higher amount than your budget.

7. Use Automated Software

For any auction site you’ve selected, its best to have an auction sniper software. Even if the auction site doesn’t offer Proxy Bidding feature, this software will provide you that service. Just enter your login details for your auction account, configure the software with constraints (like maximum bidding amount, maximum number of bids to do, when to stop, etc.)

8. Purchasing at “Buy It Now” Amount

Many auction sites like eBay, Godaddy, Flippa, etc. provide sellers to put a Buy-It-Now or BIN price on which bidder can buy the product instantly without going through bidding competition. If you find any lucrative BIN amount for your desired product, go for it. It will save you from the bidding war and will also make the product available to you instantly. 🙂

9. Bid Nibbling

Bid Nibbling is a powerful tactic to eliminate all the non-serious buyers for any product. You know a product has $$$ market value and its bidding starts from $$. You also know that it will reach that $$$ target. Still, as it starts from $$, both serious and non-serious buyers will put bid in a hope that they might get that product for $$ but you know that’s not going to happen.

So, if you’re serious about winning bid for that product, put a higher bidding amount of $$$ (which still is under market value). It will eliminate all non-serious (and many serious) buyers to try their luck in getting that product at few $$ and hence increasing your chance to win the bid.

10. Try ‘Other than Mainstream’ Sites

You know Flippa, Sedo, Godaddy are mainstream websites for domain names auction. Not only you, even hundreds of thousands or people know that. So, these sites will have serious buyers available who can bid at big amount for a good domain name. So, bidding and winning here can be expensive. But if you’ll see eBay domain auctions, it has very low bidding + buy it now prices for very good domain.

For example, on an average a four character domain name will have bidding amount $500 at Flippa while at eBay, you can get it for $20-$30.

So, purchasing domain name from eBay can be very profitable in this case.

Death, divorce, public speaking and … bidding for a property at an auction. There’s little more terrifying in life.

With online auction bidding set to come in next year – with you watching safely from home on a computer screen and keying in your bids – it might not be so scary in future.

But for now, our four top experts give their verdicts on some of our most common auction strategies.

1. Hide behind a post, or at the back of the room during the auction

Does it Work? No.

“It’s much better to take a position in the middle of the room where everyone can see you,” says Scott Smith, chief auctioneer of Ray White NSW. “Looking determined, with strong body language is then very important; with decisive movements and everything about you saying, ‘I’m not going to be beaten!’ I’ve seen a lot of people missing out at auctions, time and time again, hiding away at the back.”

2. Never make the first bid

Does it Work? Not really.

“A lot of people tend to do this but I think you might as well bid first,” says Graeme Hennessy, chief auctioneer of the independent Premier Property Auctions. “It’s not going to cost you anything, as you’ll rarely buy a property on a first bid. But if you’re there, starting the process, then experience shows us you’ll have a better chance of still being there at the end.”

How to Bid at an Auction

Those who make the first bid are more likely to be bidding at the end. Photo: James Brickwood JSB

3. Come in with a strong bid early, and knock everyone else out of the park

Does it Work? Yes, sometimes.

“A lot of people try this, especially if they know they really want the property and have a good idea of what it’s worth,” says Graeme Hennessy. “This can prove a very effective strategy as it often takes the competition by surprise.”

4. Work off your own instincts on auction day

Does it Work? No.

“It’s important to take notice of your agent’s advice and recommendations throughout the auction campaign, says McGrath chief auctioneer Scott Kennedy-Green. “On auction day, that’s even more important. Give careful consideration to what the agent recommends particularly about the reserve price on the day.”

5. Ask, in the middle of an auction, ‘Is this property on the market yet?’

Does it Work? No.

“I think this is a weak strategy,” says Damien Cooley of Cooley Auctioneers. “The owner tends to remember who asked, and feels it’s a crack at them, and sees that buyer as being difficult. And if the property is passed in, they might not want to negotiate with that buyer. It’s only a courtesy that they meet the highest bidder; not law.”

6. Hold back throughout the bidding

Does it Work? No.

“The earlier you enter the bidding, the more seriously you’re viewed by your competitors,” says Scott Smith. “Psychologically, it’s powerful being seen early and often. At an auction in Freshwater two weeks ago, the second bidder was there the whole time, bidding until the others gave up.”

7. Stay silent, then come in right at the end with a killer bid

Does it Work? Rarely.

“The challenge with that is, if an owners seen lots of competitive bidding, then they’re more likely to put the property on the market, meet the top price and sell,” says Damien Cooley. “If there hasn’t been much bidding, they’ll probably pass it in. And then, an owner is much more inclined to negotiate with someone they’ve seen bidding.”

8. As soon as someone bids against you, bid again immediately

Does it Work? Yes.

“You don’t wait even five or ten seconds, but go straight in with your counter-bid,” Graeme Hennessy says. “It always gives the other bidder the impressions that you’re going to keep going and going and going, and won’t give up. I’ve spoken to the losing bidders afterwards who’ve said the winner who used that ploy made them think they just wouldn’t stop bidding until it was theirs, so they gave up earlier than they might have otherwise.”

How to Bid at an Auction

Asking someone else to bid on your behalf can pay off. Photo: Dominic Lorrimer

9. Getting a professional to bid for you.

Does it Work? Yes, sometimes.

“If you’re in the room, you’re the one who has to bid as it’ll be your name as the registered bidder and your name on the contract,” says Scott Smith. “But you can nominate someone else if you’re going to be away, at the end of the phone line. That can work well and it means you’re out of the emotion of the auction room, and won’t get carried away by the moment.”

10. Make it clear you’d like a longer settlement, to give the vendor plenty of time to get out

Does it Work? No, especially not now.

“Vendors mostly want to settle before Christmas, so they don’t have to pay land tax,” says Damien Cooley.

Bidding at auction isn’t difficult, but doing for the first time can be a little daunting. We have several ways for you to bid, the main one being bidding in person in the room. If you can’t attend the auction, there are the options of being able to bid over the telephone, having the auctioneer bid on your behalf (proxy bidding), and in some auction rooms, it may be possible to bid live online too. If you want to place a non-attending bid, please notify us in advance of the auction day to ensure that your bid can be accommodated.

To bid in person, you just need to listen for the lot that you wish to bid on and raise your hand clearly to attract the auctioneer’s attention and get your bid accepted. Once they have seen you and taken your first bid, they will know to keep looking to see if you wish to bid again. If you feel you may be too nervous to bid yourself, you can bring someone along to bid on your behalf, or a member of the auction team will be happy to assist if needed.

For more information, please see our Bidding at Auction page.

What’s It Worth?

Our teams would love to help.
Find out what you property could achieve at auction

Don’t Miss Out!

COVID-19 – Important Auction Information

Auction House continues to respond to the impact of Coronavirus and is following the changing advice of government and medical organisations in its activities and operations. This includes home working for many in our teams, and social distancing when we are in our offices or visiting properties. Since the easing of restrictions on estate agents we are doing auction appraisals, inspecting and listing properties, and marketing them for sale by auction. Where possible we have created video tours of the lots we are selling and encourage virtual viewings of these. Please contact our office if you wish to make an appointment for a physical viewing – we will endeavour to assist but this will not be possible on all properties. In addition we would ask you to comply with NHS self-isolation advice if you or someone you live with has symptoms of Coronavirus – click the link below for the latest NHS Guidelines.

We put in place contingency plans to ensure continuity of our auction selling service as soon as lockdown was announced. Since then our auctions have been successfully run using Online Bidding, or as a Livestream service with Remote Bidding. These alternatives will continue to be operated until we are permitted to hold gatherings and operate our Room Auction events.

Full information is provided on each of our lots, but if required please call our office for assistance.

For information about our Livestream Auction and how to Bid, please see the video below:

COVID-19 – Important Auction Information

Auction House continues to respond to the impact of Coronavirus and is following the changing advice of government and medical organisations in its activities and operations. This includes home working for many in our teams, and social distancing when we are in our offices or visiting properties. Since the easing of restrictions on estate agents we are doing auction appraisals, inspecting and listing properties, and marketing them for sale by auction. Where possible we have created video tours of the lots we are selling and encourage virtual viewings of these. Please contact our regional teams if you wish to make an appointment for a physical viewing – we will endeavour to assist but this will not be possible on all properties. In addition we would ask you to comply with NHS self-isolation advice if you or someone you live with has symptoms of Coronavirus – click the link below for the latest NHS Guidelines.

Full information is provided on each of our lots, but if required please call our regional office for assistance.

For information about our Livestream and Online Auction platforms, please see the below videos:

Price Information

*Guides are provided as an indication of each seller’s minimum expectation. They are not necessarily figures which a property will sell for and may change at any time prior to the auction. Each property will be offered subject to a Reserve (a figure below which the Auctioneer cannot sell the property during the auction) which we expect will be set within the Guide Range or no more than 10% above a single figure Guide.

Additional Fees Information

*Please be aware there may be additional fees payable on top of the final sale price. This include and are not limited to administration charges and buyer’s premium fees payable on exchange, and disbursements payable on completion. Please ensure you check the property information page for a list of any relevant additional fees as well as reading the legal pack for any disbursements.

Auction House® and associated logos are registered trademarks of Auction House UK Ltd

Although auctions may appear daunting, bidding is actually very simple. Our auctioneers are very experienced and engage with bidders, so you don’t need to worry about buying a property with an accidental nod or cough. Auctions are run at a steady pace to allow any newcomers to be able to follow the process.

You have multiple ways you can bid; in person, proxy bid, telephone bid, or internet bidding.

The 4 Ways to Bid at an Auction:

In Person

If you can attend the auction room on the day, you are able to bid in person.

When you arrive, collect a copy of the addendum sheet to check for any last minute updates on the lots up for auction and check with a member of the Auction House team as to whether you need to pre-register to bid.
Collect a catalogue so you can follow the auction and you can also raise it if you wish to bid.
If you have any questions or need guidance, our team is happy to help and assist.

Proxy Bid

If you cannot attend the auction, you can choose to bid by proxy.

To organise a proxy bid, you need to complete the Proxy Bid Form which authorises Auction House to act for you and bid on your behalf up to your maximum amount.
Bidding is still made incrementally as the auction progresses, and the auctioneer will not automatically offer your maximum amount to try and get the property at the best price for you.
If you authorise a maximum bid of £100,000, and in the auction room you have the final bid at £90,000, as long as this is above the reserve price, you will have won the property below your maximum amount.

Telephone Bid

If you are unable to attend in person, but are available during the time of the auction, you can choose to bid by telephone.

To organise a telephone bid, you will need to complete a Telephone Bid Form and ensure you are contactable during the duration of the auction.
A member of the team will call you before the lot you are interested in comes up, they will repeat the auctioneer’s words to you and you will tell the team member how much you wish to bid.

Internet Bidding

For certain auctions, it can be arranged for you to make bids via internet. It is a new service being trialled and is only offered at a limited number of our auctions. Please enquire with the Auction House team prior to the auction and they will advise you further.

In all cases, proof of ID and address is required. This includes photographic ID such as driving licence or passport, as well as proof of address such as a utility bill. For non-attending bids, you will need to also provide a cheque to cover 10% of your maximum bid and the administration fees, along with your completed form a minimum of two days before the auction. The form can be downloaded with the link above, or is available within the auction catalogue.

COVID-19 – Important Auction Information

Full information is provided on each of our lots, but if required please call our office for assistance.

For information about our Livestream Auction and how to Bid, please see the video below:

COVID-19 – Important Auction Information

Auction House continues to respond to the impact of Coronavirus and is following the changing advice of government and medical organisations in its activities and operations. This includes home working for many in our teams, and social distancing when we are in our offices or visiting properties. Since the easing of restrictions on estate agents we are doing auction appraisals, inspecting and listing properties, and marketing them for sale by auction. Where possible we have created video tours of the lots we are selling and encourage virtual viewings of these. Please contact our regional teams if you wish to make an appointment for a physical viewing – we will endeavour to assist but this will not be possible on all properties. In addition we would ask you to comply with NHS self-isolation advice if you or someone you live with has symptoms of Coronavirus – click the link below for the latest NHS Guidelines.

Full information is provided on each of our lots, but if required please call our regional office for assistance.

For information about our Livestream and Online Auction platforms, please see the below videos:

Price Information

Additional Fees Information

Auction House® and associated logos are registered trademarks of Auction House UK Ltd

by Amanda Prischak on July 17, 2014

If you plan on attending a charity auction or stopping by an estate sale or some other kind of auction, we have some advice for you. Read the following tips to learn how to win an auction.

Live auctions

When it comes to how to win an auction, the work starts before you even get there. If possible, read up and do some research on the items that are up for bid. (Some sources worth consulting are eBay, an appraiser and old auction catalogs). It’s the auctioneer’s job to help sell each item at a high price, so knowing the real value beforehand will help ensure you pay a fair price.

You’ll also want to confirm the preferred method of payment beforehand—some auctions only accept cash or check.

Not an experienced auction goer? Then consider going to an auction or two beforehand to get a feel for how they progress.

Once you’re at the actual auction, take a moment to inspect the items if possible. The last thing you want to do is overpay for an item that is not in good condition.

Speaking of overpaying, take the time to decide on your bid limit for each item. It’s easy to get carried away when the action starts, so decide beforehand the maximum amount you’re willing to part with.

Once the bidding starts, try these strategies:

Be very clear when placing a bid. Make sure the auctioneer is aware of your bid by calling it out and/or waving your bidding card. It also helps to sit close to the auctioneer.
Consider bidding as a team. If you choose to bid with others as part of a team, be very clear about who will bid and what your collective bid limit is. The last thing you want to do is inadvertently bid against each other or overspend.
Consider placing a bottom feeder bid. This is an extremely low bid that is usually issued before the auctioneer even finishes talking about the item. By raising your hand early in the game, you signal to the auctioneer that you will take the item if no one bids higher.
Wait until the last possible minute. Placing a bid toward the end when things start to slow down is typically a technique used for big-ticket items.

Silent auctions

A silent auction does not feature an auctioneer. Instead, you submit your bid on a piece of paper. Silent auctions are especially popular at charity fundraisers.

First, make your choice(s). Many items might tempt you, but force yourself to choose only a few that you really want to win. Then rank those items so you know where your priorities lie. Also set a hard limit for how much you’re willing to spend. If you’re worried you might overspend, ask a partner or friend to help keep you in line.
Consider enlisting a buddy. No one wants to help a competitor, so pick someone who is bidding on different items. You can either inform a buddy of the current high bid or be authorized to write down a bid for them. (Just make sure to confirm their bid limit!)
Decide on a strategy. Some people believe in bidding early and often to demonstrate that they mean business. Others believe in waiting until the last minute to place a bid. Which strategy you choose depends on what you believe works and how often you want to visit the bidding table.
Go in for the kill. No matter which strategy you choose, the final 15 minutes or so of the auction are critical. Stay close to the bidding table to see if anyone stops by your desired item. Pay a final visit to the bid sheet near the very end of auction.

If you end up placing the winning bid on a pricier item, don’t forget to check in with an Erie Insurance Agent. You may need to look into extra coverage to ensure you’re protected in case it’s ever lost, stolen or damaged.

Many buyers have never attended a foreclosure auction before. Here’s what you can expect.

How to Bid at an Auction

Foreclosure auctions — conducted on courthouse steps, in convention centers across the country and even at the property in foreclosure — can be intimidating. The trick to avoiding foreclosure auction pitfalls is to do your homework.

1. Understand the process

Many buyers have never attended a foreclosure auction before — either a large auction in which dozens of properties from across a large geographic region will be sold or a smaller trustee auction. If you’re entertaining the thought of buying a foreclosure, it’s smart to attend a few auctions as an observer.

Observe the buyers. Sometimes auctions are as much about theatrics as they are about business transactions. You may see some buyers dressed in suits standing near the auctioneer in an effort to convince other bidders they’re representing the lender; such posturing may scare other attendees away from a bidding war.
Find out requirements. Contact the attorney or auctioneer to determine how much money you need to bring to the auction, as this varies from state to state. Many auctions require bidders to bring along a certified check for $5,000, made payable to the auction company. This provides proof to the auction firm of a legitimate intent. The successful bidder will sign his check over to the auction company, while losing bidders simply redeposit their checks.

Some larger auctions will have representatives from several large mortgage lenders in attendance. Bidders also need to be aware that large auction firms, such as Williams & Williams and The National Auction Group, charge either a flat fee or percentage of the sale price for their services.

In some cases, you must bring a percentage of the winning bid price in the form of certified funds, the balance being due in 30 days. You’ll also find states where the entire balance is due the day of the sale.

2. Do your research

In most regions, notices about upcoming auctions are published in legal newspapers or the legal section of the local paper. Zillow also posts foreclosure auction information on homes, including location, date and time. Be aware that auction dates often change or are postponed, so be sure to confirm specifics with the lender’s attorney or the trustee.

Narrow your area. Choose a few neighborhoods to research. Drive by the listed auction properties located within those neighborhoods. Beware the neighborhood that is peppered with foreclosed properties; this may be a sign that values are still dropping there.
Study the home. You probably won’t be able to get into the home, but you should be able to tell if anyone is living there. If it is occupied, there’s a good chance the home has working plumbing and electricity, but this is not guaranteed. What does the exterior look like? If it’s a disaster, there’s a chance the interior will be, too. Expect the house needs, at the very least, cosmetic upgrades: new carpet, paint, appliances and kitchen cabinets. If the house is vacant, peek inside the windows.

3. Know what you can bid

If you win this property at auction, will you live in the house? Fix it and resell it? Rent it out? Your plans for the property will affect your maximum bid price.

Compare. Find out what similar properties nearby have sold for in recent months.
Research. Use Zillow’s Foreclosure Estimate to help determine what the home will likely sell for.
Add it up. Calculate necessary improvements, based on a worst-case scenario (replacing plumbing, electrical, etc.).

Remember that your bid at the auction is absolute; there is no backing out, there is no home inspection waiver. If you think basic repairs for a house will run $15,000, you don’t want to end up paying $130,000 at auction if the move-in-ready home next door is listed at $140,000.

Make a set of photo and info sheets for each property — along with your top bid — just to avoid confusion on auction day.

4. Follow expert advice

Veteran auction-goers provide these hints for making the most of your experience:

Arrive on time. Most auctions don’t last long; if you’re five or 10 minutes late, you may miss the whole thing.
Settle in quickly. The first few properties offered often sell for less because bidders are trying to figure out pricing patterns. If your dream property is one of the first auctioned, you may be in luck.
Listen up. You may hear the auctioneer say something like: “This property is sold subject to all liens and encumbrances.” That means the winning bidder is responsible for past-due taxes and liens imposed by contractors or the Internal Revenue Service. Veteran bidders conduct title searches on the properties in which they’re interested.
Know your limits. Don’t get caught in a bidding war. Determine what you’re willing to pay before the auction and don’t bid any higher.

How to Bid at an Auction

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Every weekend, hundreds of eager first home-buyers line up to try to make their housing dreams come true at auction.

But buying a house or apartment can seem an impossible task. Does it matter where you stand? Should you open the bidding — or wait until the end to jump in?

Ultimately, success comes down to how much you are willing to pay for the property, but there are ways to give yourself the best chance of winning.

1. Do your research

Start gathering information from the real estate agent the first time you walk through the door to view the property.

Try and find out the buyer’s motivation for selling and how much interest there is in the property.

Sam Lally, a buyer’s advocate who bids professionally at auctions, says buyers need to think about the competition.

How to Bid at an Auction

“The biggest thing that people fail to realise is, you have to understand who your main competition is, just like a football coach,” he told The Pineapple Project.

“Coaches watch past games to work out how certain people that they’re up against are going to react to certain situations.

“Every buyer has a differing profile, so a first home-buyer is going to bid differently to a cashed-up downsizer who sold a bigger place, who doesn’t have the bank restraints and will bid more freely.

“If you understand those profiles and how they work then you can actually place your strategy better.”

Keep in mind though, the selling agent is working for the vendor and will most likely try not to reveal too much.

2. Write down your upper limit

The night before the auction, decide on the top figure you are willing to spend on the property.

Write it down and put it in your pocket, says Sven Feldmann, an economist who teaches auction theory at Melbourne Business School.

“Once you’re at the auction it’s very difficult to keep your cool and make a rational decision,” Professor Feldmann said.

“So holding the piece of paper in your pocket is a tangible reminder for when you’ve reached your limit.

“There is very little you will learn about a house during the auction that should lead you to decide it’s worth $200,000 more than you thought the night before.”

3. Commit to a bidding strategy

To prepare for the auction, consider your strategy for two different scenarios: one if the auction is a dud and you’re the only bidder, and the other if there are many bidders and the prices soar quickly past your limit.

“No other scenarios should worry you,” Professor Feldmann said.

“You should have a plan for each of these two cases and stick to it.”

What about making the first bid?

How to Bid at an Auction

“In most cases it doesn’t matter if you open the bidding, but what is inadvisable is to make a high first offer,” he said.

“Some people might say it’s a good strategy to scare other bidders away, but it could also cost you a lot of money if you were going to be the only bidder.”

However, there’s no problem with making a conservative bid.

In that case you’re not giving away any information, so just go for it — just don’t project too much eagerness.

“As long as the property is not on the market — do not reveal all your cards. At this stage you’re just bidding against yourself,” Professor Feldmann said.

“What sellers often don’t realise is that real and credible bidding only occurs once the property is on the market and the bidders are playing for keeps.”

4. Does body language matter?

Yes, according to Mr Lally.

“I’m in a black suit, white shirt, black shoes and it’s generally what I wear every Saturday,” he said.

“People who don’t know about advocates generally think a well-dressed person at an auction has got money. And the way you bid is obviously with confidence and sometimes that can put others off as well.

“Generally everyone who stands with their arms folded at an auction is going to bid.

“That’s why I stand with my hands behind my back, so I’m not giving up anything. You can generally tell when someone’s running out of money because their shoulders drop.”

How to Bid at an Auction

He also stands in front of the property near the board so he can see the crowd of people and know what’s going on around him.

But Professor Feldmann said psychological tactics don’t really matter.

“You can make a case for either standing at the back, jumping in towards the end of the bidding and surprising everyone, or dressing up and standing out the front,” he said.

“It’s more important to be comfortable in what you do and wear, rather than trying to put on a persona at the auction.”

5. Break down the bidding

The Pineapple Project

How to Bid at an Auction

Want to learn how to demolish debt and save more? Listen to this new ABC podcast.

You don’t have to offer a bid as large as what the auctioneer is calling for.

“I try to break them down as quickly as possible, to save my clients as much money as possible,” Mr Lally said.

“How I bid, when I bid, what I bid, is all determined on what’s actually eventuating throughout the whole auction scenario.

“I’m trying to take control of the auction and how it plays out, so, if they go $10,000, I’ll offer $5,000.”

6. Take the emotion out of it

This is the most important tip — ask yourself, are you willing to walk away if the bidding goes past your limit?

“If the answer is, ‘no this is my dream place’ then you’re likely to overpay,” Professor Feldmann said.

Stick to your strategy and your limit.

Try to remember: there will always be another house.

Discover other ways to get your finances into shape, including how to set a budget and deal with debt with the ABC podcast The Pineapple Project.

(Video Below)

How to Sign up and Bid at Graham Auctions

Do you need some help getting started with our Online Auction? Well, you’re in the right place. Signing up to bid for the auction is a quick, easy and free process! You can do so in a matter of seconds online through our Online Bidding Portal . There are thousands of weekly new yyc deals on modern furniture, electronics, home decor, wholesale liquidation products, vehicles and much more to be had in our weekly Public Auction.

Here’s a short video to help you with the Online Auction process:

Our Online Auctions are easy to access from the comfort of your home on your desktop or mobile device. Registering to bid is simple and totally free!

Let us guide you through the process in 5 simple steps:

Step 1: Find the “Bid Now!” Button to Access Our Auction Catalog

Click the “Bid Now” button at the top right corner of our menu. From there, you’ll be redirected to our online bidding page.

Step 2: Select the Date and Type of Auction to View Available Products

Select the Upcoming Auction you wish to participate as a bidder, then find the green “Bidding Open” button under your desired date and Auction type.

Step 3: Sign-in / Register to Bid

Click “Register to Bid” under the auction information OR choose an item you’d like to bid on. A pop-up window will prompt you to sign up as a New Bidder (or Log On if you’re a repeat customer.)

For first-time bidders — select the gray “New Bidder? Click Here” option.

You’ll then be asked to input your email address and then confirm it. (From there, we’ll verify that your email address is new to our system, to avoid duplicate accounts.)

Fill out the required fields with your contact and credit card information to complete your registration process.

Step 4: Bidding in the Auction

Once you’re logged in, scroll through the Online Auction inventory. (In an average sale there are 10+ pages of products!) When you find an item you’re interested in, go ahead and click the “Bid” button.

In the pop-up window, enter the amount you’d like to bid — then click “Confirm Bid”.

Step 5: Enjoy the Online Auction, and Find Some Awesome Deals!

That’s it! Keep an eye on your inbox after the auction ends — we’ll email you letting you know whether your bids in the auction were successful. (Don’t notice an email? Be sure to check your spam folder just in case)

If you found some value in this post – We’d recommend taking a look at our Guide to Online Auctions or our look at the Top Auction Sites in Canada.

If you run into issues, please call us directly at 403-777-9393 or contact our support email at [email protected] . We’re always happy to hear from our customers, and we’ll get you set up in no time.

Thanks for reading — See you sale day !

How to Bid at an Auction

The right technique can be the difference between securing a property and missing out. Picture: Tim Hunter.

An auction is the most heart pounding experience a buyer will face on the path to owning what might be their first or twentieth home.

The high stakes event can often feel like a poker game or an emotional rollercoaster for some. This can make it easy to get swept up in the mayhem — by paying more for a property than planned, or missing out due to a bad technique.

While a property’s features and the local property market have the most significant impact on how much a buyer will pay, having the right bidding strategy might just ensure you walk way with the keys, Cooley Auctions auctioneer Michael Garofolo said.

Making the opening bid can allow you to control the auction and possibly eliminate some competition. Picture: James Gourley/The Sunday Telegraph.

“Don’t be afraid make the first bid, as this allows you to take control of the auction and it shows the bidders you mean business,” he said.

Making the opening bid means the buyer can set the tone for the rest of the auction, Mr Garofolo said, adding that by starting strong, it could also scare off other buyers from bidding.

He said it was not about where a bidder starts with their opening bid, but where it finished.

“Be cheeky and offer less than the guided price, as nine times out 10, the auctioneer will always counter and might meet you halfway,” he said.

“Just remember to not put your best and final figure first as you want to leave some fuel in the tank.”

The auctioneer said buyers should never wait for the property to be called to market before bidding, as it increased the risk of overpaying.

“It means any bids from here are at market value or above,” he said.

Mr Garofolo said bidders should instead be proactive beforehand to give themselves the best opportunity to be at the front of the pack for any negotiations that come up.

Making small bidding increments of $1000 at the end of the auction could also see a buyer miss out, Mr Garofolo said, adding it allowed others to remain in the picture.

“I’ve seen many buyers miss out by $500 because they didn’t attempt to land a knockout bid,” he said.

Michael Garofolo (pictured centre) said bidders who increase their bids in increments as low as $500 towards the end of the auction run the risk of missing out. Picture: Sam Ruttyn.

At the same time, buyers’ agent Rich Harvey of Propertybuyer said people should also not throw a knockout $200,000 bid in an attempt to wipe out the competition.

“It doesn’t always work, and you could be left paying far more than what the home was actually going to sell for,” he said.

Wearing sunglasses or the body language you let off could also impact your prospects of winning an auction Mr Harvey said.

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Absentee Bidder:

A person who may not attend the sale but submits, in advance, a written or oral bid that is the top price he/she will pay for a given property.

Absentee Bid/Proxy Bid:

A bid on an item that a bidder leaves without being physically present. LiveAuctioneers allows a bidder to leave a bid on any item listed online by clicking “Bid Now” and entering a bid amount. All bids are kept confidential from the auctioneer and other bidders. At the time of the live auction, the bidding system will attempt to execute your bid at the lowest cost possible.

Appraisal:

The act or process of estimating value.

“As Is:”

Also known as “as is, where is” and “in its present condition.” Typically, this is a sign that no return privileges will be granted.

Auction:

A method of selling property in a public forum through open and competitive bidding. Also referred to as: public auction, auction sale or sale.

Auctioneer:

The person whom the seller engages to direct, conduct, or be responsible for a sale by auction. This person may or may not actually “call” or “cry” the auction.

Auction Block:

The podium or raised platform where the auctioneer stands while conducting the auction. “Placing (an item) on the auction block” means to sell something at auction.

Bid:

A prospective buyer’s indication or offer of a price he/she will pay to purchase property at auction. Bids are usually in standardized increments established by the auctioneer.

Bid Caller:

The person who actually “calls,” “cries” or “auctions” the property at an auction, recognizing bidders and acknowledging the highest bidder. Commonly known as the auctioneer.

Bid History:

A historical list of all the bids made on a particular auction during or after the auction.

Bid Increments:

The standardized amount an item increases in price after each new bid. The auction service sets the increment, which rises according to the present high bid value of an item.

Bidder (Paddle) Number:

The number issued to each person who registers at an auction.

Buyer’s Premium:

An additional service charge, for which the buyer is responsible, may be added to the price of sold items. If so, this will be indicated on the item page.

Catalog or Brochure:

A publication advertising and describing the property(ies) available for sale at public auction, often including photographs, property descriptions and the terms and conditions of the sale.

Clerk:

The person employed by the principal auctioneer or auction firm to record what is sold, to whom and for what price.

Competing bid:

During a sale, the auctioneer may be accepting competing bids for an item from various sources; these include (but are not limited to):

bids from an in-house audience
telephone bids
book bids
absentee bids
other bidding platforms

Commission:

The fee charged to the seller by the auctioneer for providing services–usually a percentage of the gross selling price of the property established by contract (the listing agreement) prior to the auction.

Consignee:

The auctioneer or auction house operator to whom goods are entrusted by another (consignor) for sale at auction.

Consignor:

The person or authorized agent or entity that consigns goods to an auctioneer. The consignor is usually the seller.

Escrow:

Money held in trust by a third party until the seller makes delivery of merchandise to the buyer.

Estate Auction:

The sale of property left by a person at his/her death. An estate auction can involve the sale of personal and/or real property.

Grading:

The process for determining the physical condition of an item. Different items have different grading systems.

Hammer Price:

Price established by the last bidder and acknowledged by the auctioneer before dropping the hammer or gavel to indicate a sale is completed.

Lien:

An adverse claim or charge against an item when that item is being used as collateral for a debt.

Lot:

An item or set of items for sale in an auction, lots are normally denoted by a “lot” number.

National Auctioneers Association:

A U.S. association of individual auctioneers united to maintain ethical standards for the auction profession; promote the enactment of just and reasonable laws, ordinances and regulations affecting auction selling; make the public more aware of the advantages of auction selling; and generally improve the business conditions affecting the auction profession.

Online/Virtual Auction:

An auction that is for online bidders only and is not conducted in front of a traditional live audience. These auction types may have reserve items in which the auctioneers bid in order to protect the reserve.

On-site Auction:

An auction conducted on the premises of the property being sold.

On-site Bidder:

A bidder who is physically participating at the auction venue.

Outbid:

To submit a maximum bid that is higher than another buyer’s maximum bid.

Preview:

Specified date and time a property is available for prospective buyer viewing and audits in advance of the sale. Also known as open house or inspection.

Reserve or Reserve Price:

The minimum price that a seller is willing to accept for an item to be sold at auction. This amount is never formally disclosed.

SMS Alerts:

Alerts sent via text message to your mobile device to inform you when another bidder has placed a bid on an item.

Starting Price:

The likely starting bid for a given auction, set by the seller at the time of listing.

Traditional Auction:

An auction that is conducted in front of a live audience at a physical location where the items for sale are located.

It’s Easy to Buy at a High Plains Auction

All High Plains auctions are open to the public. We suggest you check the online catalog for items that you may be interested in. The day of the sale, you should arrive early so you can register to bid and take some time to check out items in person

All items are organized in a logical fashion for easy viewing and comparison. We are happy to make any service records and manuals that we have on hand available to you. Plus, you can immediately take your item home with you after it’s been paid for.

Can’t make it to the auction?

Some High Plains auctions will be available for live, real-time bidding over the Internet via Proxibid. You can get to those by using the “Upcoming Auctions” at the top. You can see an image of the equipment as it sells, hear the auctioneer call out bids and place your bids over the Internet, live and in real-time. New to online bidding? You also have the option of calling us before an auction and placing a telephone bid.

What do I need to do to bid at an auction?

Before bidding, we ask you to register. Registration starts the morning of the auction. When registering, you will be asked for a piece of photograph identification, such as a driver’s license or other ID. If you plan on buy a major piece of equipment and are not already on our mailing list, you may need to supply a letter of credit or bank guarantee – check with our office before heading to the auction.

Auction Time!

Please note that start times may vary – you can find the start time of all our sales by clicking on the auction date link on the home page.
When the auction is underway, the auctioneer announces the item being sold and offers an ask price. If he does not receive a bid at this price, he will drop the price until someone starts the bidding.

One of our bid catchers, standing in front of the crowd, will relay the bid to the auctioneer.

Bidding continues until no more bids are offered. The auctioneer will then announce the lot as SOLD, and the process starts over again on the next item.

I’ve Bought Something – Now What?

When you’ve finished bidding for the auction, you can proceed to the checkout (usually in our mobile office) and will receive an invoice listing all your purchases. Payment must be made the day of the auction.

Payment information can be found for any sale in the Terms and Conditions information which can be accessed online by choosing the auction link from the home page for the auction you are interested in and following the ‘Term & Conditions’ link on that auction page.

Once you’ve paid for your purchases in full, you may collect your equipment and put it straight to work! All items should be removed from the auction site within 2 weeks unless you made other arrangements It’s always a good idea to come to the auction prepared to take your items home. Loading assistance is always provided the day of the auction and sometimes the day after if the sale is large.

Bidding, Buying And Business At Farm Auctions (read more)

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Many people find auctions scary but it’s still the most common way to sell a house in Australia.

By Caitlin Fitzsimmons

If you are wondering what to wear to bid at an auction, there is no shortage of advice on Google.

A sundress printed with cartoon pirates is not one of the suggestions but it worked for me.

Auctioneers can sometimes end an auction quickly but will rarely overlook someone who has already bid. Credit: Paul Jeffers

When we bought our house in November 2014 the market was still going gangbusters.

It’s cooled since then – in my home town of Sydney, property prices dipped 2.3 per cent in the fourth quarter of 2015 compared with the previous quarter, according to the CoreLogic RP Data Home Value Index. Across all capital cities the fall was 1.4 per cent.

Mind you, prices as of December 31 were still up 11.5 per cent year on year in Sydney and 7.8 per cent across all capital cities. And if, like me, your main motivation is buying a home for your family for the next decade and beyond, the short-term fluctuations don’t matter too much.

It’s now officially a buyers’ market, but by and large house hunters still need to deal with auctions – a genuinely scary prospect for many people.

Auctions remain the most popular method to sell residential property in Australia and there’s a lot to be said for them; an auction is arguably the most transparent and straightforward way to determine market value.

If your end goal is to buy a home, you need a strategy for how to deal with auctions.

I don’t think it matters what you wear. But some of the auction advice we got from seasoned real estate types was genuinely useful.

A common practice is to hang back while the early bidding gets under way and jump in when it starts to slow down. The risk is that the hammer can fall very quickly and there’s no going back once it does.

Instead I was advised to either stand right in front of the auctioneer and call out loud and clear so he (it’s nearly always a he) can’t miss you, or to bid early so he would know I was there. Once you’ve pegged yourself as an actual bidder, the real estate agent won’t leave you alone and there’s almost no way the auctioneer would end the auction before checking back in with you.

At some auctions you’ll get a bottle of bubbly as a reward for being the first bidder, so why not?

The most important advice was for the pointy end of the action.

If you are buying the place with another person, make your decisions beforehand. If you are standing there conferring over whether you can bid a few grand more, you may as well be wearing a sign saying “I’m close to my limit”.

When the rival bidder drops down to increments of one or two grand, don’t follow suit. Come back confidently with another five grand even if it’s your last bid.

If you’re determined to avoid auctions, you’ll have better prospects now than at any time in the past three years.

The second-best time to make an offer on a property is a fortnight to 10 days before the auction. If you make an offer too early, you’re just giving them “market feedback” to set the auction strategy and price expectations; too late and most vendors would prefer to wait and see what happens on the day.

The first-best time is, of course, after the property has already passed in at auction. That wasn’t an option for us in a bull market, but it is now and three of my friends have recently succeeded this way.

We have no regrets and the pirate dress is now hanging in the built-in wardrobe.

Caitlin Fitzsimmons is the editor of Money. This is a new weekly column.

1. You must first become a member of the site (it’s fast and free), You only need to submit this form once to become a lifetime Member. As a Member you will also receive news about upcoming auctions and any important information you need to know.

Fill in the form select a Member ID and Password that can be used to register for any Auction and click submit to open your account.
Your ID and password will be sent to the email address you register with in case you forget it.

2. In order to bid in an online auction, you must register for each auction using your ID / Password

You must also review the Terms and Conditions of the auction and follow instructions to become approved for online bidding.
After you agree to the Terms and Conditions, you will be registered for the auction. Please Note: you must follow instructions in Terms and Conditions.

3. To Register for an Auction Click on Home to access the list of upcoming auctions.

Now click on the auction you would like.
Click on any of the Register for Auction links in that auction.
Log in to verify your information.
Please read and accept the Terms and Conditions.
You must follow any specific instructions for becoming an approved bidder defined in the Terms and Conditions and/or Emails of the specific auction you wish to participate in.

If you are looking to get market value for your assets without spending a lot of your own time and money advertising, displaying and liquidating them, then the Auction Method is the ideal marketing vehicle for you.

1. Pick up your paddle

2. Watch body language

3. Control the tempo

4. Bid confidently at the end

More from Guides

5. Launch a charm offensive

6. When a property passes in 21

How to take control at an auction

Bidding increments can set the pace

Pay attention to body language

Don’t fall into the auctioneer’s traps

Tips on how to bid at an auction

Related Articles

How to buy a house at auction

The bidding process can be interesting

You should never buy a house at auction if you.

Make sure to do plenty of research on the market

Make sure to budget (time or money) for repairs

Bridget Galton

1. The estimate is just an indication

2. Do your research

3. Choose your limit

4. Look out for extra charges

5. It is a contract to buy

6. Place an absentee bid

7. Keep an eye on the deadline

8. Pay up quickly

9. Go with your heart

10. Remember the date

1. Do Research First

2. Set A Limit

3. Take Advantage of Mistakes

4. Take Advantage of Time

5. Bid at Perfect Time

6. Does the site has proxy bidding system?

7. Use Automated Software

8. Purchasing at “Buy It Now” Amount

9. Bid Nibbling

10. Try ‘Other than Mainstream’ Sites

1. Hide behind a post, or at the back of the room during the auction

2. Never make the first bid

3. Come in with a strong bid early, and knock everyone else out of the park

4. Work off your own instincts on auction day

5. Ask, in the middle of an auction, ‘Is this property on the market yet?’

6. Hold back throughout the bidding

7. Stay silent, then come in right at the end with a killer bid

8. As soon as someone bids against you, bid again immediately

9. Getting a professional to bid for you.

10. Make it clear you’d like a longer settlement, to give the vendor plenty of time to get out

Similar Questions

What’s It Worth?

Don’t Miss Out!

COVID-19 – Important Auction Information

COVID-19 – Important Auction Information

The 4 Ways to Bid at an Auction:

In Person

Proxy Bid

Telephone Bid

Internet Bidding

COVID-19 – Important Auction Information

COVID-19 – Important Auction Information

Live auctions

Once the bidding starts, try these strategies:

Silent auctions

1. Understand the process

2. Do your research

3. Know what you can bid

4. Follow expert advice

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1. Do your research

2. Write down your upper limit

3. Commit to a bidding strategy

4. Does body language matter?

5. Break down the bidding

The Pineapple Project

6. Take the emotion out of it

(Video Below)