Importance of Understanding the Level of Competition
More than a century of combined real estate industry experience and with over 3000 auctions under their belts, RT Edgar Toorak Directors know a thing or two about achieving success on auction day. As Melbourne's property market continues to face a short fall on listings, and pent up demand has boosted competition to an all-time high, having a strategic approach to an auction has never been more important.
RT Edgar Toorak Managing Director Jeremy Fox says the trick to having the final bid before the hammer drops comes down to reading the play and acting accordingly. "Understanding the level of competition is important, it will allow you to act strategically, if there's lots of interest I always recommend holding back," he said.
The Importance of Bidding in Small Increments
In his 42 years of experience, Fox says the most successful auction front runners are those who bid in small increments. "Don't try and blow everyone out of the water because you may lose budget and have no ammo left in the tank," he added. "Stand at the back so people can't see you, do it by stealth, don't let the competition know what's coming."
Preparation is Key
Being prepared in the lead up is just as important as the day itself, according to Mr Fox. "Start by asking the selling agent about how much interest there's been and what the vendors are thinking on price and if they will sell within the quoted range, buying chocolates for the agent won't go estray too."
RT Edgar Toorak Director Mark Wridgway has dropped the gavel for 30 years and says those who are easily influenced or intimidated will fall short. "Take control of the auction, don't be deterred by the silence and don't doubt the property just because no one else is bidding," he said. "Make your own decisions and run your race."
Be Prepared Emotionally and Financially
Every auction is different, however, there are some strategies which apply to every scenario, and that is preparation. "Be emotionally and financially prepared before going into an auction," Mr Wridgway said. "Do your homework on the current market and the suburb and know what it's worth to you.
Importance of Remaining Calm and Focused
With over 1000 auctions spanning his career, RT Edgar director Anthony Grimwade says auction day jitters don't just shake the buyer. "There's nerves all round on auction day, it's a big deal and a massive decision, just remaining calm and focused is key," he said.
Mr Grimwade is a stickler for organization and buyers should be well prepared before going into the bidding contest. "The market is ever-changing and prices are fluctuating, buyers need to have done their research so when they come to have a bid they've got expectations on where the property should fall," he said.
Be Prepared Beforehand
"Contracts, finances, building and pest reports all need to be prepared in the lead up, ensuring your 10% deposit in liquid funds is ready, and you've confirmed the settlement terms with the agent. "An auction is unconditional, so getting all of this in check will have you best positioned for success on game day."
The Melbourne Market
Activity is continuing to increase across Melbourne after the festive slowdown, with last week's 543 homes which went to auction, up 31.5% from the 413 auctions held the week before. Most recently, Melbourne achieved a 63.8 per cent clearance rate, according to CoreLogic