We asked REINSW members for their view …
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Ben Mitchell – Director at LJ Hooker Auction Services
“There are three common mistakes creeping into our auctions in the current environment, they are:
1. Failure to start the bidding - The homework is done and the property selected, but there is a hesitation amongst the buyers to put their purchasing position forward in the fear that they are going to "pay too much".
2. Getting caught up in smaller increments - Often buyers try to slow the bidding down by offering smaller amounts; i.e. $1,000. This can be risky for a number of reasons, as it invites more competition into the bidding due to this smaller amount and it's easier for the bidding to run on as it doesn't feel like there is much being spent each time.
3. Hesitation - The top reason for loss at an auction. As the saying goes, "he who hesitates, loses". The moment a bidder pauses to bid without a strong voice while in a good price increment, is the moment the competition is invited back into the game.”
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Briannan Crawford – Auctioneer at Cooley Auctions
There are four common mistakes that we find potential buyers make at auction. The most common mistake that buyers make is not bidding with confidence or waiting to see what other bidders do before they place a bid.
A buyer can also be over confident when they are the only registered bidder because they feel as if they have the upper hand. Sometimes the buyer ends up paying more when the property is re-listed for sale post auction.
We also find that buyers with a strict limit often just miss out on their dream home by only $1K or $10K, encouraging buyers to set a base limit with flexibility is key.
Finally, having the correct identification to register to bid is vital, as well as the correct documentation to bid on someone’s behalf.”
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