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Hi there, I am looking at buying a 2 bedroom house, which is currently owned by the NSW housing department. The house is going to auction and my understanding is that because the government own the house, no offers can be accepted prior to auction.
That therefore leaves me no option, but to attend the auction. My concern is that I have only ever been to 2 auctions in my life (and they were just for a look), so in terms of experience, I am lacking. I am also aware that it can be a tough place to be when you have interest in a property during an auction, so it would be much appreciated if I could recieve some tips to help the auction be succesful for me and possibly any cautions that I should be aware of in relation to dummy bidders and real estate agents.Thanks in advance
Ed
Hi ed,
I have purchased my first home in auction and i learnt a lot from it.
never start bidding immediately just let it flow and then when it saturates u can start bidding.
the most important point is after u bid and no one bids the real estate agent will say the owners are noo willing to sell at this price and he will try to negotiate at that stage ,be sturbourn and dont even increase a 1000 dollars.
That the sign the market price has reached.
one more thing dont show that ur eager in buying anytime.
in case ur taking ru family with u ,in that case dont make serious conversations so that the dummy bidders know ur emotional biding.
last but not the least.set a target and dont be emotional.
if u have to loose it u still can get beter deals.
have this attitude.Hi ed
a few other tips. One is never tell the agent or anyone else at the auction what you are prepared to bid, if you do they will make sure you end up spending that amount. I believe you should be confident with your bids it can psych out opponents. And as “new investor” said set a limit before the auction and don’t exceed it. sure its tough to lose at an auction but it is valuable experience. Remember the deal is the figures not the house, if the price goes higher, look for the next deal i’m amazed that when i miss out, i soon find a better deal.
all the best westan
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