Secrets of an auctioneer: Real estate pro reveals the ONE major mistake on bidding day that could cost you your dream home

One of Australia’s most prolific auctioneers has revealed exactly how to come out of a bidding war with the keys to your dream home.

Speaking to FEMAIL, Andy Reid, from Melbourne, said random bids can be the key to success on auction day and those who don’t do it are making a grave mistake.

‘Go random with your bidding increments – offer random amounts other than 1,2,5,10,20 as it’ll throw off the auctioneer and confuse your competitors,’ he said.

These bids should be made with confidence, to shake your competitors.

‘Break down ‘whole numbers’, so instead of just offering $6,000, offer $6,500. 8 is also becoming a really common number (lucky for the Chinese) so try $8,800.’

However there are some rules when it comes to ‘being random’, he explained, and it is important not to take it too far.

‘I wouldn’t mess with a lower decimal than $100, so I would not recommend offering $82,’ he said.

Sticking to bid values in the 100s helps to keep you onside with the auctioneer and maintains your reputation as a serious buyer.

Melbourne-based auctioneer, Andy Reid, said random bids can be the key to success on auction day
Andy says it is important not to get the auctioneer off-side but $100 interval bids are acceptable and can help confuse the competition

What are five of Andy's most important auction day tips?

  1. Don’t let other bidders control your destiny
  2. Always bid with confidence
  3. Don’t let agents hassle you too much
  4. Always prepare a plan (bargain, fair and stretched prices, opening volley)
  5. Always watch auctions on Facebook and YouTube beforehand to get a much greater feel around how it works

This is important, especially if you have your heart set on a property, and some of Andy’s other tips come into play here.

‘It isn’t good to say “I am out” too many times, it loses it’s validity,’ he explained.

It is also important to have a game plan including what you would consider to be bargain, fair and stretched price ranges.

‘I have seen many a strike on the arm so it is important you are on the same page as your partner,’ he said.

Andy said it’s best to get a babysitter on the big day if you have children.

‘I love toddlers running around but they do increase their parents’ anxiety which isn’t ideal when emotions are already heightened,’ he said.

‘Go random with your bidding increments – offer random amounts other than 1,2,5,10,20 as it’ll throw off the auctioneer and confuse your competitors,’ he said

What are the median house prices in Australia's major cities?

April saw a ‘cooling’ of Sydney and Melbourne’s property market however prices went up in Adelaide and Perth.

SYDNEY: Down 0.1 per cent in April, down 0.3 per cent in the quarter to $1,416,960

MELBOURNE: Down 0.2 per cent in April, down 0.5 per cent in the quarter to $1,000,926

BRISBANE: Up 1.7 per cent in April, up 5.9 per cent in the quarter to $880,332

ADELAIDE: Up 1.9 per cent in April, up 5.6 per cent in the quarter to $676,546

PERTH: Up 1.2 per cent in April, up 2.5 per cent in the quarter to $578,751

HOBART: Down 0.4 per cent in April, up 1.4 per cent in the quarter to $793,723

DARWIN: Up 1.3 per cent in April, up 3.2 per cent in the quarter to $576,149

CANBERRA: Up 1.3 per cent in April, up 2.5 per cent in the quarter to $1,070,220

Source: CoreLogic median house prices in April 2022

Other tips include stopping agents if you feel like they are hassling you too much, and watching a few auctions on Facebook and Youtube to get a proper feel for them before putting their own hat in the ring.

Andy is the Founder and Director of Sold By Group, a full-service auctioneering company dedicated to maximising 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 home owners to take advantage of the ‘cooling’ market.

‘Potential buyers will be more likely to find their first home for a bargain price, making their mortgage repayments more affordable even if they’re paying a higher interest rate,’ Lloyd Edge, the founder and managing director of buyer’s agent Aus Property Professionals said.

In a sign of a cooling market, Sydney’s weekend auction clearance rate has plunged to just 58.7 per cent as of May 8, down from 81.4 per cent a year ago, new CoreLogic data revealed.

Melbourne’s auction clearance rate has fallen to 64.6 per cent from 74.1 per cent as Brisbane’s equivalent level slipped to 62.7 per cent from 74.4 per cent.

But Adelaide has bucked the trend, with auction clearance rates rising to 81.2 per cent from 77.2 per cent.

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