5 bidding personas to snag your dream home at auction this property season
You’ve done all of the necessary real estate research, watched the market for months and finally found your ideal home. But which of these five bidding masks should you wear to auction this property season?
Competition certainly heats up every Saturday at property auctions across the country with prospective homebuyers willing to go to extreme - and sometimes downright weird - lengths to secure their dream homes.
“Bidding is a sport that is rich in psychological tactics that requires buckets of emotional strength and patience. Participants need to be able to adapt quickly based on the moves of other players - think of it like a high stakes game of chess,” says Mozo property expert, Steve Jovcevski.
And being able to change up these “tactics” based on the market you’re buying in is arguably the most important auction skill for homebuyers to hone in on at auction.
“The reality is that no auction is similar, so be ready to change up your style based on the mood in the room,” Jovcevski said.
“No matter what persona you take on when bidding, the best thing you can do is to enter the auction well researched, calm and with a clear idea of how much you are willing to spend.”
So we’ve put together five bidding personas that could help you snag your ideal home at auction this property season.
5 bidding personas to try out at your next auction
1 - Strong and silent
Cool, calm and collected - you’ll make strong but infrequent bids throughout the auction to show your fellow bidders that you mean business and you’ve got the numbers to back it up.
Just be mindful that at a busy auction with lots of bidders, you could get drowned out in all the noise and your serious, calculated demeanour could be lost in the clamour of competition.
2 - Fast off the blocks
You’ve done your research and know how much you’re willing to spend so why not drop a big opening bid that sends shivers down the spine’s of your competition.
This might not be necessary at smaller auctions, but if you do choose to try it out, make sure you’ve covered all the bases in researching for this particular property - you don’t want to end up overpaying.
3 - Loud and brash
You’re the larger than life character at the auction. You’ve made a series of bids, people know you’re here and know you’re serious about buying this property which can seriously knock their confidence.
Too many loudmouths at this auction could mean you’re not so different after all. If that’s the case, consider biding your time and waiting for a more opportune moment to make your move.
4 - Fashionably late
The bidding is tight, there are two main players and things look to be coming to a close when you step in and shake up the auction with a confident bid.
If your bid isn’t big enough or you don’t seem confident enough, other bidders may be encouraged to pay that little bit extra, believing you’re unwilling to go any higher which could mean a higher closing price.
5 - The invisible bidder
You have a friend who knows the property game and has an ice cold demeanour cut out for auction success. Getting him/her to go to the auction, dressed smartly, with you on the phone can give you the aura of professionality that frightens most average auction-goers.
You won’t be there to feel the vibe of the room and so you’ll have to trust this person’s auction nous to help you get the deal over the line.
Where to use which persona?
Like Jovcevski said, it is all about knowing which persona best suits the auction you’re attending and with housing markets differing so much from state-to-state, it is crucial you nail the perfect persona for your market.
“For Sydneysiders looking to bid this property season, they’ll find a lukewarm market that has a slower and steadier auction pace with potential buyers making very considered purchasing decisions,” he said.
A highly responsive and aggressive bid could play well, but always assess the room before placing a bid.”
Meanwhile in Melbourne - where competition and growth is still rife - Jovcevski advises homebuyers to be more aggressive at auction.
“The Melbourne property market is heating up, meaning that big numbers and psychological tactics like bidding bold and later bids could make a big splash and rattle potential buyers. Brisbane is similar, with a warming market requiring bold bidding and buyer confidence.”
Wherever you’re looking to buy this year and whichever approach you take, make sure you have an idea of the amount you’ll need to borrow and what your monthly mortgage repayments will look pre-auction.
You can start by checking out a range of popular, affordable home loans in Mozo’s comparison tables then plug those rates, along with the amount you’ll be borrowing, into our home loan repayments calculator to find out how much you’ll be paying each month for your dream home.