Auctioneers reveal auction tips and tricks for homebuyers

Psychology, aggression and masking up – but not for Covid – are just some of the ways homebuyers can bend the goings on at an auction to their whim to get the house of their dreams.

Rules around mask-wearing have been relaxed across the nation, but wearing one at an auction — inside or out — could help you nab a bargain this spring.

As top Sydney auctioneer Damien Cooley points out, your facial expression may show you’re overeager for the property.

“Wear a mask,” Cooley said.

“As an auctioneer, it’s all about body language and it’s really difficult to read the body language of a buyer with a mask on.”

While looking too desperate is a no-no, so, a bold approach can pay dividends.

Leading Melbourne auctioneer Fabian Sanelli said the key is spook the other bidders by “going super aggressive”.

He said that making the first bid is actually a smart tactic.

Melbourne auctioneer Fabian Sanelli suggests making the other bidders think “you have deeper pockets, fake it until you make it”. Picture: Andrew Henshaw

“A lot are holding back, waiting for a vendor bid or another buyer to make the first move and trying to suss out the mood of the auction.

“Show the other bidders that you’re the one to contend with — bid rapidly over the top of them; make them think you have deeper pockets, fake it until you make it.”

In a bidding dual where your opponent is making $10,000 or $20,000 offers he suggests counter bids of just $1000 “within a split second … it’s all psychology”.

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That’s all very well if there are obviously other bidders, but Luxe Listings Sydney buyer’s agent Simon Cohen said that’s not always the case in the current market.

Luxe Listings buyer’s agent Simon Cohen says “I wouldn’t be going crazy”. Picture: Tim Hunter.

“Why would you go in aggressively if there’s no competition?” he asked.

“I’d be sitting back and waiting to see what happens — you’d want to see if there’s other interest or not.

“I wouldn’t be bidding unless other people are.

“If they are bidding, by all means bid, but I wouldn’t be going crazy.”

Any other tips?

“Suss out the room, see who’s there; see who’s really strong’ who’s running out of steam and make a call …”

In Queensland, Apollo Auctions director Justin Nickerson said this spring is the perfect time for opportunists to capitalise, with less buyers to compete against than last year.

“There’s a change in buyer depth, with last year the average number of buyers peaking at eight or nine per auction and now it’s hovering between two or three.

“And also, buyer attitude has changed significantly, with Fear of Missing Out replaced with Fear of Overpaying.

“But my advice for buyers is: ‘Don’t let a very good time to buy slip through your fingers’.”

He sees some people register at auctions and then “sit on their paddle, waiting for things to magically happen … but you’ve got to make it happen”.

“I’m saying to buyers, ‘if you want the sellers to understand the market, you have to play your part as the market, show the sellers where you see the value.”

Sanelli in Melbourne agreed that buyers needed to make the most of the opportunity to buy at the auction when the vendors are under pressure to sell.

Auctioneer Justin Nickerson says: “Don’t let a very good time to buy slip through your fingers.”

“Everyone thinks they’ll wait to see what their competitors are going to do, but the moment a property passes in you’re giving power back to the vendor,” he said.

“Give the seller of that property a decision to make — if you don’t they change their minds.”

And the auctioneers have advice for sellers, too.

Nickerson said: “Listen to your agent because they’re in the best position to understand what the buyers are thinking.

“Don’t put blinkers on thinking it has to be worth a certain amount or we wouldn’t sell it under X.”

Sanelli said a common mistake that sellers are making is setting the reserve price above the advertised price range.

“They’re trying to protect their property price by ramping up the reserve but its backfiring because they’re not giving buyers any reason to bid,” he said.

Auctioneer Brett Roenfeldt says there are plenty of emotional bidders in Adelaide at the moment.

“I’ve been telling sellers you’ve got to set your reserve where buyers see logical value because you can take the price from a logical price to an emotional price in a split second.

“If a reserve is too high, the auction needs to be paused, the agents and auctioneer need to speak to the sellers about plan B, and you’ve allowed the buyers to start over-thinking.

“You could even see buyers driving away, and once the pressure is off them, they’re not emotional any more.”

There are still plenty of emotional bidders in Adelaide, said independent auctioneer Brett Roenfeldt. “Adelaide is performing the best of any Australian capital city,” he added.

“Stock levels are very tight … and we’re seeing a lot of Victorian buyers showing interest and a larger amount of Sydney buyers.

“If you can do your job remotely, you can sell there and pocket a whole heap of money because it’s such good buying.”

He said you can still buy a four-bedroom home in a beachside suburb for $1.6m.

“Buyers need to be rather aggressive in their bidding to give themselves every change of securing the property,” Roenfeldt said.

“If you’re confident about what the property is worth, come in with a very strong opening bid that knocks out many competitors to stop the bidding gaining momentum.”