Key Auction Tips - Part 5 How to Prepare Your Auction Strategy

Welcome to my final installment in this series of Auction articles. Over the last month you should have developed a more comprehensive understanding of the auction process. To finish it off, let's take a look at how to prepare a good strategy for auction day. Here are my top seven tips:

Be familiar with the auction process - I have mentioned this before but it's so important that I'm going to repeat it here. If you've never been to an auction before, I recommend that you attend at least a dozen as a spectator. This will give you some auction experience without the pressure of being a bidder. As a spectator you can get comfortable with the process and atmosphere. You'll see how the auctioneer generates excitement and tension. You should also analyse how people bid and if they're trying to use any tactics.

Set your limit and stick to it! - The first and most important auction rule is: set your limit before the auction and NEVER go over it. This is the only rule that applies in all situations. If you blow your limit, your dream home can become your nightmare liability as you struggle to make mortgage repayments that are far more than you've budgeted for. By the time you're preparing for auction day, you should have finished your research and have a good idea as to what the property is actually worth so that you can set your limit accordingly.

Get there early - You should aim to arrive at least 30 minutes before the start of the auction so that you can do a final walk through and register to bid. Get an idea of the number of other registered bidders and see how interested they appear in the property.

Control your emotions - You need to control your emotions at auction because emotions can cost money. The number one auction mistake that you will pay for `with interest' is getting carried away and paying too much for the property. That's a mistake you could end up regretting for a long, long time. Remind yourself there's always more than one property out there that will meet your needs.

Don't bid until the reserve has been met - Before the reserve price has been met, the property isn't truly for sale. So why would you bid on something that's not really for sale? I don't get serious about bidding until the property has been called on the market.

NEVER bid against yourself - If you're the highest bidder and everyone else has stopped bidding, never increase your bid, no matter how much pressure the auctioneer or selling agent puts you under. Some people don't even need to be asked to bid against themselves. Surprisingly this happens all too often when the highest bidder loses track of their bids. They're so nervous, caught up in the excitement of the bidding process or confused, they raise their own bid. It sounds ridiculous however it must be easy to do as I see people do it all the time at auctions.

Get someone you trust to bid for you - It's often a good idea to get a trusted friend or family member to bid at auction for you, especially if you're worried about going over your limit. Tell them your maximum bid and instruct them not to go above it under any circumstance. It's a great insurance policy against bidding too much. The other and by far the best option is to hire an experienced Buyer's Agent with extensive auction bidding experience to bid on your behalf.

I trust you have enjoyed this series of auction articles. All five parts of this series can be found on my blog

Take a look at my best seller The Insider's Guide to Saving Thousands at Auction for everything you need to know about auctions.

Related blogs: Key Auction Tips series:

• Part 1 - Understanding the auction process
• Part 2 - Organise Your Finances and Research the Market
• Part 3 - The Psychology of Auctions
• Part 4 - Selling Agents' Tricks of the Trade
• Part 5 - How to Prepare Your Auction Strategy

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