The Nobel Memorial Prize for 2020 for Economics was awarded for insights including what happens when you’re bidding on a home — in auctions, private sales and Expressions of Interest.
There are two big unknowns about how you can win an auction:
You know the area? You know what comparable homes have been going for? Good start.
You don’t? Hit Google and the real estate sites and search for homes like the one you’re considering and see what’s sold at what prices. Keep doing that until you have a feel for what to expect. You’ll get there.
Then ask the agent and doubt the answer.
Ask competing agents in the area. Most will know the property.
Ask 10 other people at inspections what they think it will sell for — if they’re on the same page they can be amazingly accurate.
Check the app we built: realAs.com — if a home is listed, on average it comes close to within 5% of actual selling prices.
Now you know what it should sell for. If it goes over, be ready to walk away.
It’s inside your limit? You’re on.
We’ve been to thousands of auctions. We’ve seen how people lose:
You’ve done your homework on how much to bid. You have the money.
That leaves nerves.
How do you overcome those?
You don’t need to. Just expect them.
Don’t worry about when bidding starts. It’s when you get down to the business end and you’re close to your limit that nerves can matter.
Expect that. “Live” the auction, in your mind, over and over until it’s a bore.
Then when the crunch comes, go big. Make your voice louder. Make it look like you’ll never walk away.
But never never never go over your limit. Let others overpay. You’ll win another day.
You need some good advice?
Morrell and Koren were Australia’s first home buyers’ advocates.
At the top end, there’s hardly a home that we don’t know.
Top End Trends is an insider’s view of the highs, the lows, the clever and the not so clever in all kinds of real estate and its buyers, sellers and (often) estate agents.
© Morrell & Koren Pty Ltd