52 Level the playing field

Try to wrest control of proceedings as much as possible. It is the person with the most confidence and perceived power that wins. Being well informed, having some experience and not getting emotional all help. But if you feel you will struggle, get someone more experienced to bid on your behalf. It doesn’t have to be a buyer’s agent; it might be a friend.

51 Open the bidding high

It can be a good tactic to open the bidding high, close to where you think the reserve might be. (Remember the property is not going to sell unless it reaches the reserve anyway.) Many people start low because they think they will get a bargain. Realistically, this is not going to happen, so grab the chance to scare bargain-seekers off.

50 Be loud and proud

Make your bids fast and assertively. This shows confidence. Also, say the full fi gure you are bidding each time, rather than the increment you are bidding. This makes each of your bids sound more impressive.

49 Challenge the competition

Don’t be confrontational or overly aggressive. But size up the other buyers. Look them in the eye when you are bidding, as well as when they are. Don’t procrastinate or agonise over your bids.

48 Psychology is key

Arrive early, survey the landscape and size up the other buyers. Psychology is key, so make sure you dress well and ooze confidence. This will lead the other bidders to think you have no limits.

47 Play your cards close to your chest

Prior to the auction, don’t tell the selling agent your limit or budget. If you do, they will go back to the vendor with the information (to help them formulate their reserve price). However, do tell them that you are interested in the property. If you do, they should keep you in the loop if it becomes available for sale before auction.

46 Identify the auctioneer

Ask the selling agent who the auctioneer is – the person, not the company. Then go and observe them in action at other auctions to familiarise yourself with their style and the techniques they use. When it comes to your auction, call the auctioneer by name. It is disconcerting for other bidders.

45 Become an auction-goer

Attend as many auctions as possible to get comfortable with the process and understand the rules involved. It also gives you the chance to observe and learn about different bidding strategies.

44 Ignore pre-auction antics

Don’t get spooked by the pre-auction antics of selling agents and auctioneers. These include saying a property is going to be worth less than the reserve, or not stating a price. Ignore them and instead focus on what you expect based on your research and your budget.

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.