Let’s address a few obvious questions first.
- Why do you want to reveal these secrets?
Because they are not really secrets, simply psychology.
- What makes you an expert?
Nearly 30 years in real estate and I have conducted hundreds of on-site auctions. and liked doing them, (great for my ego)…biggest one was $13.5 million. I was good at them (great for my ego). It made me and my agency look good (great for my ego).
- Do you still do them?
No, some time ago we concluded:
A. Buyers didn’t really like them.
B. Sellers weren’t attaining the buyer/s highest price ( if indeed there was a buyer!)
C. There is a better way.
Ok…Let’s have some fun and buy a home.
There is just one rider…
If your competitor/s have more money and are prepared to use it…YOU LOSE.
1. Ask the agents prior to the auction day if you want to vary the terms of sale should you be the buyer. Maybe a 5% deposit, longer or shorter settlement, very few agents want to lose a genuine bidder (and maybe the buyer).
2. Two days before the auction, decide the ABSOLUTE LAST DOLLAR you are prepared to pay, right up to your ‘walk away price’, that is the price, no matter that another $50 was bid, you would WALK AWAY!- be prepared to really agonise over it.
Never end on a ‘round’ dollar’ amount, better $547,350K than $545K.
3. At the auction, dress and act like an agent, (even down to carrying a clipboard) suit and tie for men and similar professional attire for women.
Looking like an agent/s puts doubt in your competition minds that not every thing is ‘above board’. Buyers are uptight, nervous and suspicious anyway, many are concerned, so you want competitor/s thinking the legitimacy of the bidding is possibly tainted and diminish their enthusiasm to bid.
4. Dismiss any agent’s ‘auction helpers’ that may approach you with a polite wave of the hand.
5. IF, the auctioneer tries to engage you in conversation at the start or during the auction, be confident and answer back amiably and light heartedly…again keeps raising doubt. Even better, if you know the auctioneer, speak to him by name, such as “Thanks Wes”, again tends to create doubt.
