27 October 2021
5 top tips for buying at auction
In a previous life, Lugtons Residential Sales Consultant, Kris Gray, could be found on the motocross circuit. He may have since swapped the track for open homes, but he says there are more similarities between the two than many people realise… particularly when it comes to auctions.
“The key to getting a great result at auction is preparation. Much like racing! In motocross, you need to prep your bike well, have trust and confidence in your riding ability, make a clear plan for how you’re going to race on the day, and then commit. Auctions are no different.”
With that in mind, Kris, who is based in our Central Hamilton Branch, shares his top racing tips to help you secure a successful outcome at auction.
1. Spend time doing the prep
Preparation is key when it comes to buying at auction. That means doing due diligence on the property you’re wanting to buy. Make sure you do your research. Look through the property once, twice, even three times. Get your builders through and make sure you have a solid understanding about the property you’re looking to purchase. Current Level 3 restrictions still enable you to access properties, so speak with your agent if you want to look through one more time.
2. Choose your racing partner
Don’t try to play the auction game on your own. Build rapport with an agent you trust, someone who understands what you are looking for in a property. Lugtons sales consultants are experienced when it comes to auctions and can advise you upfront whether a property you’ve expressed interest in is worth investing your time in and is likely to be in your price range.
3. Make a plan for on the day
This is important. Sit down with your agent and work out a plan for auction day. Be open, honest and upfront with your agent. They need to know how much you’re happy to bid up to in order to advise you on the best approach. Don’t hold back information. Remember, you and your agent are on the same team. Work together and you’ll have a greater chance at getting the result you, both, want. You only get one shot to buy at auction, so talk about worse case scenarios. Plan for the worse, hope for the best.
4. Leave emotion for the finish line
It’s easier said than done, particularly when you’re bidding at auction on your dream home, but leave emotion for the end. By removing the emotion, you can bid more confidently, and by sticking to your game plan, you and your agent know what’s happening on the day.
5. Observe other races
If you’re serious about winning, you don’t want to leave anything to chance. If you haven’t bid at auction before, observe a few before you participate. Lugtons hold auctions every Wednesday at 12pm. You can view them online or, in Level 2 or below, come into the auction room at 1010 Victoria Street, Hamilton.
Benefits of auctions
With more and more homes being sold at auction, chances are high you’ll end up purchasing your property under the hammer. But Kris says auctions have a lot going for them, so he encourages buyers to embrace the process.
“Auctions wean out the less serious buyers, or those who aren’t yet ready to commit, so you’re only up against those who are truly interested in a property. The auction process is also more transparent than negotiations or tenders, where you have no idea what other parties might be bidding.”
“Just remember to prepare, plan, trust in your agent and go into the process with confidence. Then, much like racing, you can enjoy the rush at the end!”
Looking to buy at auction? Speak with a Lugtons Residential Consultant today who can support you through the process.