You’re auction-ready, or so you thought, and then suddenly the bidding is running apace and you’re left in the dust. Auctions are unpredictable but here’s what to do when things go awry.
Molly Tierney, a resident of Sydney’s Parramatta, had set her sights on an apartment in nearby Concord. Come auction day, her strategy was to be patient and throw her hat into the ring towards the end… only she never quite got the chance. The bidding price went up rapidly and the apartment eventually sold for $90,000 over reserve and about $50,000 over Molly’s budget. And another one bites the dust!
Auctions are never predictable and, as Molly knows well, any number of things can go wrong on the big day. But contrary to what you might think, it’s not the end of the world. We caught up with Molly after the auction to discuss what can go wrong, and how best to deal with a not-so-lucky auction day.
Would-be buyer Molly Tierney narrowly missed out on this Concord apartment. Picture: realestate.com.au/buy
Things that can go wrong:
A LOT of bidders
At Molly’s auction there were 50 registered bidders. 50!
Knowing how many bidders are in the field will give you an idea of how competitive the auction will be and, ultimately, whether the house will remain within your price range.
Fast-paced bidding
In Molly’s case, the bidding took off before she was even able to throw her hat in the ring. “There were quite a lot of bids coming from a lot of different parties, so we chose to hang back and not engage in the kind of tit-for-tat bidding and then we didn’t end up getting in,” she explains.
More experienced bidders
Bidding confidence is important when it comes to property auctions. A more experienced bidder will have a better ability to read the room, so to speak. They may know when to come in, when to bow out and what to expect before the auction even begins. As Molly attests, any chance to learn, even an unsuccessful auction, is a step towards your final goal.
What you could do differently:
Don’t get too emotionally attached
Molly pictured herself hosting New Year’s Eve on the balcony. It’s important not to get too attached. Picture: realestate.com.au/buy
Molly warns against getting too emotionally invested in your property. “I was convinced that this was the house for me. I definitely envisaged myself catching the bus to work, walking down to the park on weekends, being close to the city for New Year’s Eve, so I would probably rein that in, in future,” she advises.
Just because you love it the most, doesn’t mean you’ll get the home.
Don’t discount your bidding strategy
You might have been on the right track when it came to your auction strategy, but other factors (like, say, the 49 other bidders!) just got in the way.
“By watching the successful bidder, he was obviously using the same bidding strategy as myself,” Molly observed. “So, that reinforced that the strategy was right, just not on this occasion.”
Expand the search
After the property went for $90,000 over reserve, Molly realised the suburb, Concord, may not be within her budget.
“The market is so competitive. It might be the area, it might be the time of year, coming in to spring,” she cedes. “I’ve learnt that I’ve probably got to take a step back and look at a different area, this one might not be affordable for me.”
Be patient
Molly has resigned herself to accepting the apartment was not ‘the one’. Picture: realestate.com.au/buy
Most people don’t win the first auction they attend. The experience in itself is nerve-wracking and each time you step up to the plate, you’ll learn something new about your approach or the market itself. Be patient, stay positive and you’ll get there in time.
Do more research
Before heading out to your next auction, make sure you’ve done thorough research.
“Next time I’ll do a bit more research on comparable sales, anything else that’s sold in the region of late,” Molly says.
Keep in the race
Don’t be disheartened by your loss. Every auction you attend is more experience under your belt, which will ultimately make you smarter and wiser for the next round.
“The best advice I’d give other homebuyers is to keep in the race,” Molly encourages. “Something will come up eventually. I know I’ll get a property at some point. Just keep in it, keep researching and keep looking at properties that come up.”
This article was originally published on
5 Oct 2018 at 4:28pm
but has been regularly updated to keep the information current.