Everyone responds differently as a bidder on auction day. Those who aren’t prepared probably feel a little more anxious than those that are. After all the property you have fallen in love with is at stake. And everyone who is bidding on the day feels the same way. It can be daunting. We see at least one of these types of bidders at every one of our auctions. Because they go into the auction blindly, they run the risk of losing their dream property or, worse, over-extending themselves.

To avoid this, you’ve got to do your research. Research the local market and the prices being attained for homes of similar style and features.

Don’t fall into the trap of believing Canberra has only one real estate market. It doesn’t. It has many – all of the suburbs, even neighbourhoods, which differ in desirability, position to amenities, access to transport, work opportunities and the CBD.

So, before you take the next step, be sure you know the price trends of the local area and price bracket of similar properties that have sold in the past three to six months.

This all helps you build a picture for that moment when you enter the battle of an auction and hopefully win the home of your dreams or your next investment property.

Here are our 8 tips for buying at auction.

‍1. Obtain a pre-approved loan.

You must know your spending limit. The pain of getting in too deep, even for a property you love, is stressful and potentially devastating.

2. Attend the inspections.

Have a chat with the agent, ask for the contract for sale, and make sure they know you’re a serious buyer. This will help you down the track as they will be able to inform you of price expectations as the campaign progresses. And listen to the comments of others walking through the property. These comments will give you an insight into the desirability of the property.

3. Don’t be afraid to make an offer before the auction.

Keep in mind the if the property is up for Auction, the owner is likely committed to seeing it through to auction day. You’ll need to make sure your offer is compelling to change their mind. Make sure you put a time limit on the offer, and you’ll know exactly where you stand prior to the scheduled auction.

4. Go low or be realistic?

Obviously, you want to pay as little as possible. But there’s no point insulting the vendor. The agent will ask how you arrived at that figure and your answer should be based on research, not opinion. Really low offers will rarely get you the property. If you want to scoop it up before auction, be in the ballpark.

5. On auction day, arrive early.

Register with the selling agent and take time to chat about the property and the level of interest in it. Show your ID, and in return, they’ll give you a paddle with your unique number on it. You cannot bid without this.

6. Position yourself strategically within the crowd.

You want to see everyone and gauge from body language the serious buyers and their spending power. You can usually tell when someone reaches their spending limit.

7. If the auctioneer is struggling for a first bid, be courageous.

But don’t go in with a round number like $500,000. Instead, offer $485,000 as this means there’s a temptation for bidding to move in $5k increments instead of $10k.

8. Remind yourself to bid with confidence – and to breathe!