The Amato Property Blog

Top 5 Tips for Bidding at Auction: Lessons from a Recent Auction in Belmont NSW

We’ve covered auction strategies before, but a recent auction at  Belmont, NSW serves as a powerful reminder of how critical preparation is when attending an auction. With an initial price guide of $850,000, the bidding surged to $1,010,000 before it stalled. What happened next is a perfect example of how high emotions and strategic play can impact the outcome.

After a pause for discussions between the auctioneer, selling agents, and the vendor, the highest bidder raised their offer to $1,050,000 – a $40,000 increase against themselves with no competing bids at the time. The property eventually sold for $1,075,000 to another bidder.

The question remains: why bid against yourself? And wouldn’t it be better to stick to your offer and wait for other bidders to re-enter the fray? Let’s explore the nuances of auction dynamics with these five essential tips for bidders.

1. Set a Clear Limit – And Stick to It

When attending an auction, it’s easy to get swept up in the moment, particularly when the property ticks all the boxes. Before you step foot at the auction, establish a firm ceiling for your bidding. This should be based on sound financial advice, market research, and your own comfort level.

In the case of the recent Belmont auction, the highest bidder increased their offer by $40,000 without competition. While this bold move could be seen as securing the property, it’s essential to avoid overextending yourself.

2. Understand Auction Dynamics

Auction environments are intense. The pressure is high, and time is short. Understanding how an auction flows can help you remain calm and make smart decisions.

If bidding stalls, as it did at $1,010,000 during the Belmont auction, it can signal the vendor may need to reassess their reserve price.

In this situation, it may be better to hold steady and see if the auctioneer invites further competition, rather than offering more when no one else is bidding.

3. Stay Calm Under Pressure

One of the key lessons from this recent Belmont auction is the importance of maintaining composure. Bidding against yourself can be an emotional response, driven by fear of losing the property or wanting to ‘seal the deal’.

However, if you’ve already got the highest bid, it’s often wise to stay patient. Trust that your offer speaks for itself, and let the auctioneer and selling agents do their job.

The auctioneer and selling agents did a fantastic job for the vendor in Belmont, but as a buyer, your role is to make sure you are bidding smartly, not emotionally.

4. Know When to Wait and When to Act

Auctions are all about timing. While you don’t want to seem overly cautious, patience can be a powerful tool.

When the highest bidder increased their offer by $40,000 with no immediate competition, it gave the seller a strong upper hand, allowing another bidder to swoop in at $1,075,000 and win the property.

Sometimes, rolling the dice and holding firm can yield better results, especially if the competition isn’t as strong as you initially perceived.

5. Seek Expert Advice and Representation

At any auction, it’s essential to remember that the auctioneer and selling agents are working in the vendor’s best interests, and in the Belmont auction, they certainly delivered.

Having a buyer’s agent or property advisor on your side can help balance the scales. They can provide objective advice, helping you avoid emotional bidding wars and ensuring you stay focused on your strategy.

Final Thoughts

The recent auction in Belmont, shows just how unpredictable auctions can be, especially when emotions come into play. Bidding against yourself is rarely advisable, and it’s often better to pause, reassess the situation, and make decisions based on logic rather than fear of missing out.

Remember, the selling agents and auctioneer are there to get the best result for the vendor – and they often do an excellent job. As a buyer, it’s crucial to come prepared, stay calm, and play strategically to avoid overpaying for a property.

If you need help navigating the auction process, feel free to reach out. We’ve seen it all and are here to help you succeed in what can be a complex and competitive space.

Property Spotlight!

17 Vista Parade Belmont, NSW 2280

3 Bedroom mid century home with ocean to mountain views

Charming mid-century home offers breathtaking panoramic views from the ocean to Lake Macquarie and the Watagan mountains, with potential for renovation. Well positioned for a relaxed lifestyle, it’s within walking distance to lakeside amenities, parks, schools, and recreational activities,

Sold at Auction (21/09/2024): $1,075,000

This is what $1,075,000 will buy in Belmont NSW at Auction

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Disclaimer

Amato Property, together with their directors, officers, employees and agents have used their best endeavours to ensure the information passed on in this document is accurate. However, you must make your own enquiries in relation to the information contained in this document and seek advice from your financial advisor, broker or accountant to ascertain its application to your circumstances.