How not to overspend at auction

You must know what you’re prepare to pay for the property but then my advice is to have 2 ‘maximum’ figures in mind.

Maximum number 1 – this is the figure that you think the property is worth and what you’re prepared to pay for it. But we’re all human and we let emotions get involved!

What if there is you and just one other bidder left in the auction? They’ve just out bid you but another $1,000 or another $5,000 could get the property for you. You make the extra bid, already higher than what you thought you’d go. The other bidder then goes one higher than you. Maybe another bid of $5,000 will get it for you!

While you’re still standing there, there’s always a temptation to ‘make one more bid’.

Then you get to Maximum number 2. This is where you physically remove yourself from the auction. Go for a walk. Go for a drive. Whatever it takes so you’re not there making any more bids.

Come back 5 minutes later when the place is sold and find out you missed by $1,000 or, hopefully, there was another bidder waiting on the sidelines and they outbid your earlier rival.

You may not be happy but at least you didn’t overspend. Unfortunately it’s back to the property research and do it all again another time.

For more information, contact Peter Ruddock on (03) 9877 6471 or peter.ruddock@mortgagechoice.com.au

Posted in: Upgraders / movers

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