What sort of bidder are you?
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 just a 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 image they’re trying to convey.
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, 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 auction success. The most you can do is bid steadily, appear confident, feel out the other buyers and be aggressive when appropriate - and, of course, hope for the best!
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