How a Buyers Agent Can Help You at Auction
Property auctions are a minefield. You might be interested in a property, and while you don't want to bid more that it's worth, you also don't want to miss out. Inexperienced bidding while in the grip of high emotion doesn't always work to your advantage.
One option is to hire a buyer's agent. Among other things, buyers' agents are experts at auction strategy and negotiation. Following are some of the ways a buyer's agent can help you at auction.
A buyer's agent will know when to bid, when not to, and when to let a property pass-in. Sometimes a good strategy might be to make an early aggressive bid so as to intimidate other buyers and attempt to knock out the competition. Sellers often propose a conservatively low property estimate to encourage as many buyers as possible to form an emotional attachment, seeing it in their mind's eye as possible for them. An aggressive approach can, at times, work to negate this.
Other auctions might call for a more conservative approach such as waiting until the property has hit the reserve price and is 'on the market' before making a move.
An experienced buyer's agent will spot any nerves and inexperience in other bidders and, like a good poker player, know how to use this to their advantage by altering the pace of their bids, rather than stick to the same tactics every time.
Confidence & Emotion
If you are new to bidding, your hesitancy might be evident to those around no matter how much you attempt to disguise it. The authority and confidence a buyer's agent holds, can itself serve to intimidate the competition, and deter them from bidding that little bit higher than they intended, so pushing up the property price.
The emotional detachment an agent will have towards the property is always a plus. You might be highly interested in a property, and have difficulty concealing this from the sellers. A buyer's agent, being more objective, will not have the same problem.
They will have the strength to walk away at your maximum bid, and the skill to endeavor to be first at the post-auction negotiation table if the property is passed in.
If you are planning to buy a property at auction, it might be well worth it to hire a buyer's agent to act on your behalf. Not only will it save you a lot of stress, it could save you thousands.