What Type Of Bidder Are You?
Some of the common bidder types
Do You Really Know Who You Are?
How does being put in a room with a dozen other strangers all clamouring to buy the same thing sound? Intimidating? Daunting? If so, you're probably new to the residential property market, and you could use some advice.
Auctions are one of the most common ways of buying a house, so it's worthwhile figuring out exactly what kind of strategy you're going to take into the process, and getting to know some of the other strategies your competitors are likely to try.
Here are a just few of the common bidder types you're likely to encounter at your next auction - who knows, you might be one of them!
The High Roller
Everyone's had experience with this type: Either straight off the bat or after the first few opening bids have been cast, one bidder comes out and puts down a value that blows everything before it out of the water.
Whether or not this type of bidder really has as deep a pocket as they seem is less important than the fact that that's the image they're trying to convey. Many bidders will put in a strong bid early on in order to spook or intimidate other buyers.
Be aware, however, this strategy can backfire. If you put in too high a bid, you could end up paying more than you needed, or if you don't have the money to go much higher, you could take yourself out of the running earlier.
This type of bidder will come in toward the end before making her or his first bid. Like a good marathon runner, they'll let the competition tire themselves out before pulling away just before the finish line.
If this is you, you could be faced with the same problem as before: If there's someone unwilling to give up the sale, you could find yourself in a bidding war at the very end that will stretch your finances. If it doesn't sound like you, then you might want to be wary of this character nonetheless, who could derail your chances of buying a property when victory is in sight.
Even if you are an amateur, you want to avoid the kinds of mistakes this type can make. This includes overbidding on a property, which can frustrate and inconvenience other buyers, as well as putting down random bids in the hopes of confusing the competition. While certainly annoying, it's unlikely this strategy will be effective.
There's no one secret trick to winning an auction. The most you can do is bid steadily, appear confident, try feel out the other buyers and be aggressive when appropriate - and, of course, hope for the best!