Emotions run high on auction day, so how can you best be prepared for when the hammer comes down? Read on for some useful tips on auction do's and don'ts.
Buyer tips
(1) Check everything - Do your homework. Remember it's your money and it's your decision.
(2) Find out the true value - Look for similar places that have gone in that same area to give you an idea of what the value of the property is
(3) Don't give away too much - If you tell people how high you're prepared to pay, it will put you at a disadvantage. Play it like a poker game and keep your cards close to your chest
(4) Know the true value - This means, do your research! You can find out what similar houses in the area went for by looking in the paper or hiring an independent valuer
(5) Get legal advice - Before you sign any documents, hire a lawyer to look through them for you. Don't be tempted to save a few bucks by not hiring one as it can cost you tens of thousands
(6) Don't bid too soon - Don't bid before the reserve price has been reached. The reason for this is because until this price is reached, the property isn't for sale
(7) Keep your highest price a secret - The buyer has the advantage in an auction negotiation simply because they know the minimum price the seller is willing to accept without the seller knowing the maximum price the buyer is willing to pay. If you keep this price to yourself you have a good chance of saving thousands of dollars
