At the Auction

Bidding at auctions is a skillful task often requiring split-second decisions to determine the final outcome of the property sale. It's vital to have made your decisions before you enter the auction room. As a minimum make sure you can answer the following questions;

• Which properties are you bidding on?
• How much are they worth?
• What is the most you can afford to spend?
• How will you pay the amount required on the day?
• Can you pay the remainder in 30 days time?
• Have you researched a good conveyancing solicitor?
• What do you think the reserve will be on the property?

If you can confidently answer all of these questions then you are well prepared to enter the auction house and place a bid.

The bidding process

You can place bids in person, over the telephone or by proxy. Unless you really know what you are doing you should attend the auction in person. This way you can assess the other bidders and the level of interest to determine how to bid.

When the auctioneer calls your lot they will start the bidding at a low value designed to attract buyers and start the bidding process. The auctioneer has a lot of powers they can exercise, including choosing the size of incremental price increases during rounds of bidding, selling a property if it comes close to a reserve price and ultimately accepting the winning bid.

It's a fallacy that scratching your nose will indicate a bid, but be careful not to draw attention to yourself when you are not bidding as it may irritate the auctioneer and lead to embarrassment.

Use your poker face

Bidding on property has high stakes. There are hundreds of thousands of pounds exchanging hands, and any advantage you gain can save you thousands of pounds. Don't worry about what anybody else is doing, just focus on what you want and how much you're prepared to pay for it. Worrying about bidding tactics could save you money, but equally you could end up shooting yourself in the foot.

That said, try not to give any information away by showing too much of what you're thinking. Screwing your face up at a small increase in price might ellicit a speculative bid from an eagle-eyed competitor. Stay calm and focus on what you want to achieve.