Buying at Auction in a Hot Property Market

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With the Property Market getting more competitive, you need everything you have to make sure you get across the line in an auction. In this episode of Real Estate Talk, Kevin Turner interviews Bryce and asked him for some tips on buying at auction in a hot property market. Here’s a snippet of the interview:

“Kevin: I’m joined now by the co-host of “Location, Location, Location Australia”, a great program, Bryce Holdaway. Good day, Bryce!

Bryce: Hello, Kevin. How are you?

Kevin: Good, mate. Heading towards the end of the year, looking forward to a big 2015. I want to get you to come back next week in the show, too, and tell me about your big tip from 2014. But right now, Bryce, I’d like to know what are your tips if you’re going to be bidding at auction between now and Christmas?

Bryce: What I find is most people don’t really like the auction process. I usually find on the show that there’s quite a lot of the people who say that if it’s going to auction, they actually want to pass on that property because they don’t really like the process. My view is if you can actually understand the process and get some skills and some tips around it, it makes it a little less daunting.

Kevin: You’ve actually done a series of videos on how to bid, or your tips at auction. It’s at the website www.EmpowerWealth.com.au. Just click on the “Education” link and follow it through to the How To’s Tips. Let’s do a summary of those, and I’ll mention that website again at the end. What’s your first tip for people?

Bryce: The first one is to attend auctions, and loads of them. And by that I mean, in the lead up to going to the auction that’s going to be live for you, go and visit as many auctions as you possibly can prior to the process, including the ones where your auctioneer is doing some in advance because it gives you a couple of things that you can focus on. One, you can understand the market activities, so you can understand what the price guides are (say, $600 to 660) but the prices are probably going about 10% above the top end. You can actually see where real price activity is.

You can also understand if there’s only one bidder at these auctions, you know that the market is a little bit quiet for that particular property. The alternative is if there are five, or six, or seven bidders you know there are lots of buyers out and you really got to use that as preparation for working up a price you’d like to be able to pay. ”