You’re at an auction hoping to buy your dream home. You’re amongst a bunch of strangers, some of whom are there to try to snatch it from under your nose… The auctioneer opens the bidding… Only one of you can walk away with it. Adrenaline pumping yet?

Australia is one of the world’s leading countries when it comes to selling property by auction as opposed to private treaty - auction is generally how we do it here and it’s not going away. But bidding for a home or investment at an auction can make even experienced buyers nervous. 

Leading auctioneer and owner of Under the Hammer, Matt Shalhoub, gives us his top five auction tips. And some of his advice might surprise - there are a lot of misconceptions out there. 

Don’t stop communicating with the agent

“Prior to auction, some buyers don’t want to seem too keen around agents. But in most cases the agents will help you, and answer any questions you might have. And if it sells prior to auction, you may miss out as a potential buyer," says Shalhoub.

Don’t set just one limit - especially not one that ends in a zero

“Don’t set one limit, set two. The first is the ideal limit that you’d like to pay, the second represents your own walk away price. And make sure that doesn’t end in a zero or a five, because that’s what most people do. Odd numbers could get you the property,” says Shalhoub.

Don’t be afraid - stand your ground

“When you’re bidding, don’t let the property go because you’re distracted by the auction process. If you need to, be vocal, speak to the auctioneer or agent. Ask for a minute’s breather, or a chat, to gather your thoughts.” 

Don’t bid small toward the end

“Some people will tell you to bring the bidding right down at the end but numbers like five hundred dollars just invites in competition. Five thousand dollars, however, will cause hesitation and that’s what you want.”

Don’t second guess other bidders

“You don’t know what that other bidder’s budget is - and everyone has one. Just focus on your own intent.”

Read more about auctions:

Four tips for winning at auction

How to win at auction

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