walaj

House we are looking at is coming up for auction next week.

As the auction season has not really got under way we have only been to 1 aution as an observer. Part of me thinks I could do it (the bidding), but then part of me doesn't want to get to the auction and think "ohh ****".

Anyone want to share their experience at buying at auction? Professional bidder or DIY?

Any recommendations for North Shore Sydney?

chels

Have you got a friend you could sweet talk in to doing it for you?

The only auction I've been to wasn't very nice to watch, there was a huge crowd of neighbours and house hunters like us gawping, two registered bidders. It felt a bit like a gladiatorial match. The real estate agents kept buzzing between bidders and the vendor, whispering in ears, getting the bidders to go that bit extra, then the auctioneer started on them, telling them to put the extra grand on their credit card etc. When it got down to one bidder against the vendor, I really wanted to say to them to stop bidding and let it get passed in, and then negotiate in private...

They eventually bid enough to make the vendors happy, I think they paid too much and they looked more shocked than happy by the outcome... the only good thing (besides getting the house they wanted) was that it wasn't featured in the Sunday papers! Imagine everyone knowing your business like that...

Have you had inspections etc done on the house you're interested in?

steve99

Are you buying as a "Home" or as an investment?
if the latter i'd definitely say do it yourself, its a financial transaction, dont think of it in any other way, treat it like buying a car.
If its as a home, then personally I would still do it, but would want to do it on my own, without any other people I knew to influence me.
Obviously discuss it in depth before you get there, set your upper limit, discuss before hand and agree what you should do if you get to your limit and think that its only a couple more K and its yours, dont leave yourself open to getting a rollocking by the missus!
From the ones ive been to (probably only 5 or 6 in total) I would say dont even start your bidding until the latest point possible, let someone else push it up to where they want, wait till a point that its either just about to be sold to someone and come in with a $1k rise or let it get passed in. No point joining in with 5 or 6 others.
Stick to your guns with your bids and bid what you want not what the auctioneer tells you to, try and slow it down the whole time, if its only you and one other bidding (which it should be if you go in as per the above) its a lot harder for the auctioneer to refuse your bid for being too small an increment.If its way under what your prepared to pay and you think the opposition is struggling to stay in, then up your bids slightly to try and get rid of them.
Good luck!

chels

Re the bidding process, try not to bid until the auctioneer declares that it's on the market. Don't be bullied into making a bid just because no one else wants to start it off, that's not your problem, that's the auctioneer's problem!

Jacque

Yes, bidding at auction, especially for your own place, can be nerve wracking at the best of times, as it's usually only something most people do once or twice in their entire lives. As a buyers agent, I've done quite a few now and have no fear of them at all! However, if you keep your head about you and approach it with a price limit absolutely in mind, you won't go wrong. Bidding at auction doesn't have to be stressful or complicated! It's just wrought with emotion for the buyer Steven has already given some great tips, but here's a few more:

*Don't let the REA's intimidate you at all. If they approach you during the bidding (as they will) politely inform them in a LOUD voice (so that everyone hears) that you are perfectly fine and don't wish to have anyone assist you. This should keep them away and from distracting you from the task at hand. If they continue to come up to you, despite this, simply holding out your hand like a STOP signal when they approach is also very effective

*Contrary to what most people advise, I like to stand near the front of the auction (side is best, near the vendor if you can arrange it) so that I can clearly view who is bidding at all times. Reading the body language of others can provide clues as to who's reaching their limit and who's not.

*I'd recommend starting to bid only when you're sure there are no other bids forthcoming - sometimes the intrusion of yet another buyer can be enough to cause current bidders to reassess their position.

*Wear dark glasses to hide your eyes- expressionless is the way to go

*Bid loudly, confidently and don't pause or look at your partner (the telltale sign with the look "Should we go more dear?" is often observed at auctions when couples have exceeded their proposed limit) if you can avoid it.

*If a property gets passed in on a VB or no bids then don't be afraid to approach the REA for private negotiation afterwards.

Have a read of this for further tips if you like- article from Sydney's Domain section in the SMH : http://yahoo.domain.com.au/public/ti...ps_Buy_Auction

Good luck with it all and I hope the outcome is your new home!! Keep us posted!!

walaj

Thanks for the insiders guide

it will be for a home (rather than investment)

Do you still wear sunnies inside?
I have also got to work on stopping that smirk happening.
Like the idea of not standing next to partner to avoid looking at them.

Does the standing at the front mean that the other bidders can easily see you, or do you give a 'don't mess with me' attitude off to intimidate them?

Would me (being female) put some off, as it mostly seems to be the bloke doing the bidding?

Anything else to watch out for, as there will be a few auctions held at the same place?

walaj

Thanks for the advice, you lot are giving me more confidence to go ahead with it, the difficult bit is setting the max we would go to when I am sure there will be at least 2 other bidders.

Feel the daunting bit is the speed the auctioneer talks, taking in the crutial bit but ignoring the waffle, whilst taking in the competitors, and fighting off the REA

Had seen on a video the REA approaching bidders & my thought was to tell them to bugger off -although I will paraphrase Jacque politer version.

walaj

Jacque - just thought I had better not come up against you

flip

Paid a professional - I'm pretty sure we paid less than we would have if we'd been doing the bidding, I managed to keep my breakfast down and I felt confident we'd not made a mistake as it's so very different here.

Jacque

Hehe... slim chance of that, as the North Shore is a big place

If it's an inside auction with lots of sales on the same night, ask for the order of sale before you get there. If your property is last on the list, it's highly likely to be the most popular. REA's do this to draw a crowd for maximum effect

Ditch the sunnies if inside, naturally, but don't feel at all intimidated about being female! Wear your highest heels, and knock 'em dead- they're only blokes, after all

walaj

It is suppose to be 1st on the list, which has surprised me given what you say (did not think it would be last, and 1 or 2 of the others I would have thought would have come earlier)

walaj

did not even get the chance to make a bid - lots of bidders, the amount quickly exceeded the price guide, then in a flash was past our max bid, then ended up around 40% higher than the top of the price guide.

There were a few who thought they had made killer bids, a few gasps at the bidding & I'm sure a lot of shocked people at how much it went for.

Jacque

40% higher than the quoted top of the price guide? That actually has the capacity to qualify for price underquoting by the particular REA, an offence that is actually disallowed here in NSW and one for which agents can be fined for deceptive and misleading practice. If you don't mind me asking, or even PMing me, I'd love to know the details- property and agency involved. When was the auction?

marvinc

They showed part of an auction on the 'down under' series here on daytime tv, bit of 'tabloid' programme but it did mention that auction houses generally went for a good deal more than they were worth? Can't remember the figure but think it was about 20% - Here is UK I think we are used to getting the cheaper type of housing at auctions and generally good investments if you know what you are buying.

chels

Jacque - I know of three eastern suburbs properties that were sold at auction for a great deal more than the price guide. What is roughly the percentage that would be classed as an example of underquoting? Would houses that were quoted in the low 700s but sold in the high 900s, for example, be cases of underquoting?

Thanks.

Sorry you didn't get the house walaj