Buying property at auction is intense, fast-paced, and competitive.
If you're not prepared, it's easy to get pressured by the auctioneer or agent and end up overpaying.
Or worse, you walk away empty handed because the competition was too fierce and intimidating.
As a buyer’s agent, I’ve seen it all. I know exactly what it takes to come out on top on auction day.
Below I have outlined my typical auction strategy.
Treat it as your guide to winning on auction day.
Auctions are designed to trigger emotions.
The point of an auction is to create a fast paced and competitive atmosphere.
Prior to auction, decide upon your maximum bid.
In other words, determine the highest price you're willing to pay for the property before you walk away from the purchase.
Auctioneers are highly skilled at building tension, and agents will push to you bid higher.
It's easy to get caught up in the moment and bid more than you planned.
But it's important to be disciplined.
If you go into the auction with a predefined and firm maximum bid, you can prevent being swayed above your limit.
When bidding starts, stand where the auctioneer can see you and maintain a confident, controlled presence.
This shows others that you are ready to compete and can intimidate less-experienced bidders.
Maintaining composure and showing confidence is critical to a winning auction strategy.
Auctioneers can be intense.
Masters of momentum, they speak at a rapid pace, raising the energy in the room, and creating an almost hypnotic urgency to drive bidding higher.
When this happens, it is crucial you keep your composure and take note of the auctioneer pressure tactics on show.
They might use fake momentum, suggested bid increases, or sudden ‘on the market’ announcements to create urgency.
The classic 'third and final call' is another attempt to drive up the price. They will often repeat is several times before the hammer falls.
By understanding these tactics, you can take calculated pauses and avoid impulsive bids.
As excitement builds, the auctioneer will start pushing for larger bids.
But don't fall into that trap.
It may seem like a good idea to place an aggressively high bid in an attempt to scare off the other bidders.
However, a massive bid can drive the purchase price well beyond the property’s market value.
As the auction heats up and you approach your limit, try bidding in smaller increments—say, $1,000 or even $500.
A well-timed reduction in bid size can work to your advantage by slowing momentum.
If the auctioneer initially rejects your smaller bid, remain firm.
If other bidders hesitate, the auctioneer will accept your offer to keep bids rolling in.
When bidding increments reach $1,000 or less, you can comfortably use rapid bidding as a deliberate tactic to intimidate competition.
Maintaining a rapid pace with your bids can pressure other bidders, making them feel unsure of your limit and potentially leading them to drop out.
It allows you to dictate the pace instead of the auctioneer or other bidders.
A strong presence also shows your seriousness about winning the auction and is likely to discourage other bidders.
Watch other bidders closely.
Are they nervous, hesitating, or whispering to a partner?
Are they showing dejected facial expressions, crossing their arms or shaking their head?
These signs can indicate they’re close to their limit.
Use this knowledge to time your bids strategically.
Auctions are daunting and stressful.
But you already know that.
Given you're still reading this article, it's likely you have been emotionally wrecked by an auction before.
You should consider using a buyer's agent to represent you at auction.
Auctions are a battlefield, and the auctioneer’s job is to squeeze every last cent out of you.
As buyer's agent's, we help you keep emotion out of the equation.
We will prepare a strategic plan with you prior to auction day, and stick to it.
This means you will never overpay.
We can teach you to read an auctioneers tactics like an open book.
This means you can strategically time bids, psych out the competition and know exactly when to strike (or to walk away).
Even if the property gets passed in, we can use this to our advantage by negotiating directly with the vendor after the fact.
Often therefore securing a better price than what would have been achieved in open competition.
