It's possible that in the real estate game, there is nothing more exciting than a live auction, especially if you're one of the people actively involved. Bidding at auction can also be incredibly nerve-wracking, particularly the first time around but most people say that once they've done it, they're hooked. That explains then, why large crowds often gather at auctions regardless of many of the peoples' interest in the property or their intention to buy. Attending auctions is a regular pastime for thousands of people around the country, and having been involved in real estate and Century 21 for so long, I can easily understand why.
For those attending to actually bid, no matter how experienced they may be, it is still a big event, and there are some key things to remember when it comes to auctions.
Firstly, view the property properly! Just as you would with any prospective purchase, know what you're buying. Auctions often don't have the cooling off period available through private treaty, so make sure you're committed if you're committed to bidding!
Know your limit! It is very easy to get caught up in the excitement that an auction can generate, and I've seen many potential buyers enter into bidding wars with their competitors for fear of losing their dream home. Most of us know when the asking price slips out of our range, so make sure you keep that in mind. And if you're notorious for struggling with that concept, have someone with you who can act as your common sense should yours disappear in the face of competition.
Make sure you bid clearly. We've all seen or heard stories of bidders not realizing they are still in the game, so make sure you can be seen when you want to bid, and that you are not being mistaken for still bidding when you've called it quits!
There are online auctions available these days too, so if you do have an interest you can log on to watch these in real time, as well as participate if you can't physically be there yourself. So if like me, you are dreaming of an overseas holiday home, you can rest easy knowing you may still be able to bid for it without making the trip – now I just need to win Powerball for the rest to fall into place…