Auctioneer Andy Reid reveals the one major mistake you are making on bidding day
Melbourne-based auctioneer Andy Reid said random bids could be the key to auction day success
One of Australia’s most prolific auctioneers has revealed how to get out of a bidding war with the keys to your dream home.
In conversation with FEMAIL, Andy Reidof Melbourne, said that random bids can be the key to success on auction day and those who don’t make a serious mistake.
“Go random with your bids – offer arbitrary amounts other than 1,2,5,10,20 as this will deter the auctioneer and confuse your competitors,” he said.
These bids should be made with confidence, in order to wake up your competitors.
“Break up “whole numbers” so instead of just bidding $6,000, you’re bidding $6,500. 8 also becomes a very common number (luckily for the Chinese), so try $8,800.”
However, there are some rules when it comes to “being random,” he explained, and it’s important not to go too far.
“I wouldn’t mess with a decimal lower than $100, so I wouldn’t recommend bidding for $82,” he said.
By sticking to bid values in the 100s, you stay on the side of the auctioneer and maintain your reputation as a serious buyer.
Andy says it’s important not to sideline the auctioneer, but $100 interval bids are acceptable and can confuse the competition
What are five of Andy’s top auction day tips?
1. Don’t let other bidders decide your fate
2. Always bid with confidence
3. Don’t let cops bother you too much
4. Always make a plan (bargain, fair and stretched prices, opening salvo)
5. Always watch auctions on Facebook and YouTube beforehand to get a much better idea of how it works
This is important, especially if you’ve got your heart set on a property, and some of Andy’s other tips will come in handy here.
“It’s not good to say ‘I’m gone’ too often, it loses its validity,” he explained.
It is also important to have a game plan that includes what you would consider to be advantageous, fair and stretched price ranges.
“I’ve seen many a blow to the arm, so it’s important that you’re on the same page as your partner,” he said.
Andy said it’s best to arrange a nanny on the big day if you have kids.
“I like toddlers running around, but they increase their parents’ anxiety, which isn’t ideal when emotions are already heightened,” he said.
“Go random with your bids – bid arbitrary amounts other than 1,2,5,10,20 because it will scare the auctioneer and confuse your competitors,” he said.
What are the median house prices in Australia’s major cities?
In April there was a ‘cooling’ in the property market in Sydney and Melbourne, but prices rose in Adelaide and Perth.
SYDNEY: Down 0.1 percent in April, down 0.3 percent in the quarter to $1,416,960
MELBOURNE: Down 0.2 percent in April, down 0.5 percent in the quarter to $1,000,926
BRISBANE: Up 1.7 percent in April, up 5.9 percent in the quarter to $880332
ADELAIDE: Up 1.9 percent in April, up 5.6 percent in the quarter to $676,546
PERTH: Up 1.2 percent in April, up 2.5 percent in the quarter to $578,751
HOBART: 0.4 percent down in April, up 1.4 percent in the quarter to $793,723
DARWIN: Up 1.3 percent in April, up 3.2 percent in the quarter to $576,149
CANBERRAE: Up 1.3 percent in April, up 2.5 percent in the quarter to $1,070,220
Source: CoreLogic median home prices in April 2022
Other tips include stopping cops if you feel like they’re harassing you too much, and checking out a few auctions on Facebook and YouTube to get a good feel for them before throwing their own hat in the ring. stiches.
Andy is the founder and director of Sold By Group, a full-service auction company dedicated to maximizing auction results for their clients.
He won the REB Auctioneer of the Year in 2022, the REIV Senior Auctioneer of the Year, and the REIV President’s Award for Service and Support to the Industry in 2020.
Andy believes there are still plenty of “bargains” out there — and others agree with many experts encouraging first-time homeowners to take advantage of the “refrigeration” market.
“Potential buyers are more likely to find their first home for a bargain price, making their mortgage payments more affordable even if they pay a higher interest rate,” said Lloyd Edge, the founder and principal of buyers’ agent Aus Property Professionals. †
In sign of a cooling market, the clearance rate for weekend auctions in Sydney fell to just 58.7 percent on May 8, down from 81.4 percent a year ago, new CoreLogic data revealed.
Melbourne’s auction clearance rate has fallen to 64.6 percent from 74.1 percent, while Brisbane’s equivalent level fell from 74.4 percent to 62.7 percent.
But Adelaide has bucked the trend, with auctions rising from 77.2 percent to 81.2 percent.