Does the thought of bidding at a public auction make you anxious? Or are you too time poor to attend one for a property you really want? Auctions can be a great way to figure out the real market value of a particular home but they can often make people nervous if they haven't attended one before.
Purchasing real estate under the hammer can be much more complex than simply placing a bid, but did you know you don't always have to bid yourself? Professional bidders can be hired to help out those who don't want to or aren't able to attend an auction to bid for a property.
What is a professional bidder?
A professional bidder will attend the auction with you, or attend for you and bid on your behalf. They are often called 'buyers advocates' and can also assist you with a range of matters relating to finding the right property for you. Providing the buyer is willing to negotiate they might even be able to help you secure a property without needing to go to an auction.
They use their knowledge and expertise to get the best results for their clients without going above the prescribed budget for their fee. This is regardless of whether you are successful at the auction or not.
What can they do?
Those who employ a professional to attend and bid on their behalf usually fall into one of three categories - those afraid of public speaking, those who recognise they're out of their depth and those who are time poor. Buying at an auction requires analysing a lot of data to settle on your maximum limit, having a clear strategy for auction day and a cool head. Professionals can take care of all of this for you, for a price. The more experience the better!
Are you considering hiring a professional bidder? Here is how to proceed
- Decide on the price you want to pay – It's very important to settle on a figure before heading to the auction. This includes doing as much research as possible on what you think the property is worth well ahead of the day. You'll also need to go over this figure with the bidder you've chosen to work with. Attend as many inspections as you can before the big day, this will help you figure out the potential competition. Details about building reports, body corporate fees, rates and charges should factor into this price.
- Decide on the price you're willing to pay – It's important to consider that other bidders will often think the property is worth the same amount as you do. Are you prepared to pay a little bit more to get the property if it's what you really want? It's best not to get too emotionally involved with the home as this can often lead you to pay too much for something that is less than ideal. Professional bidders can help you to decide if your upper limit is realistic or not.
There are often a lot of things to determine how much an individual property might be worth, from recent comparable sales, market sentiment, time of year and the motivation of other vendors.
- They'll study the crowd – This next step happens on auction day. A professional bidder will be armed with a plan and call on all their experience to read the crowd around them to beat them all and get the best outcome for you. Remember, just because another buyer has a stronger budget doesn't necessarily mean they will be the winning bidder.
- Bidding starts! – Bidding at a property auction can often be like a game of poker, with each party trying to figure out the others and what their limits might be. If one bidder/group of bidders starts to get frazzled the others could employ psychological tactics to make them lose their nerve and pay too much. This is where a professional bidder will be worth the cost, as they know all the tricks in the book. They bid strategically at the right moment.
Professional bidders can offer a reassuring solution for those daunted by property auctions. From helping you set realistic prices to bidding strategically, their expertise can help you get closer to securing your dream property without the stress.