43 Be prepared to walk away
Always be prepared to walk away so that you don’t overpay. A realistic sense of the value of the property ensures you have the confidence to walk away from hysterical overbidding situations, especially in an auction environment.
Traps to watch out for
- Underquoting
- Dummy bidders
- Collusive bidding
- Vendor bids
- Auctioneer encouragement of overpaying
- Properties listed at inflated prices, which are not reflective of market value
- Insufficient research (which can lead to inaccurate information and limited knowledge)
Gaining control
Metropole Property Strategists director Michael Yardney is an old hand at auctions, yet he still gets the butterflies and adrenalin surge that are a part of the process. This means he understands the nerves that come with negotiating. He has the following advice for less experienced negotiators.