How to bid at auction

Chances are, if you’ve committed to attending an auction, you will have already spent a lot of time visualising how your new life inside that property might look – and the future of this dream-like fantasy is what’s at stake when you pick up your paddle.

Add in the natural pressure associated with competition and it’s easy to understand why auctions are often fraught with emotion. Which is why it pays to be prepared.

With that in mind, we asked Damien Cooley, managing director of Cooley Auctions, to break down how buyers should bid at auction.

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1. Pick up your paddle

Regardless of whether your state requires you to pre-register, you will need to show ID to the selling agent on the day of the auction, so that they can take down your details and hand over a paddle.

You will need to show the auctioneer your paddle every time you bid.

2. Watch body language

Once you have your paddle in hand, stand in a position that allows you to keep an eye on the competition.

According to Cooley, non-verbal cues offer valuable glimpses into a rival’s buying power.

“One of the biggest mistakes buyers make is they don’t watch their competition,” he says.

“If we’ve got a bidding sequence that’s going $800,000, $810,000, $820,000, and it slows down, and a buyer tries to go $825,000 and they’ve got their mum and dad with them and they’re all looking at each other and having a conversation – there’s a very good chance that that buyer has reached their limit and they’re discussing with the family whether they’re out, or whether they should go another $5,000.”

In the event such a buyer comes back with “a desperation bid of $5,000″, Cooley recommends immediately placing a higher bid – a signal of intent that he likens to a knockout blow.