Five Insider Tips for Buying at Auction from Justin Nickerson, Director of Apollo Auctions

Five Insider Tips for Buying at Auction from Justin Nickerson, Director of Apollo Auctions

Smith & Co Realty bring you insights from Justin Nickerson, a leading authority in property auctions. Here’s an interesting fact: 68% of the time, the opening bidder ends up purchasing the property. So when it’s your turn, seize the moment. Prepare your strategy before the auction using his 5 tips in the video below – or scroll for our notes. If you’re still confused about what to expect at an auction you might find our auction guide helpful.

  1. Exude Confidence: Even if you’re feeling nervous, present a confident demeanor. This can psychologically deter your competition.
  2. Lead the Way: Place your bid quickly and early. Set the pace and make your competitors follow your lead, establishing your position as a strong contender.
  3. Devise a Plan: Bidding at auction is straightforward, but you must participate to win. Plan for three price points: the dream price to start the bid, a fair market price you believe the property will likely sell for, and the absolute maximum you’re willing to spend.
  4. Bid with Speed: A swift bid sends a clear message—you appear financially unbounded and ready to pursue the property without hesitation. This strategy shifts the burden of decision-making to your competitors, compelling them to react promptly while you maintain the bidding momentum.
  5. Maintain Auction Control: An auction axiom states that the buyer with the least pressure is the one currently holding the highest bid. Their part is momentarily complete, while others must act to change that. By remaining composed, you can navigate the auction without succumbing to pressure or impulse, thereby staying in command throughout the event.

By following these strategies, you position yourself as a formidable participant in the auction, likely increasing your chances of success in the dynamic world of real estate auctions.

FAQS by Apollo auctions

Can I make an offer before auction day?

Absolutely. In fact, up to 50% of auction properties are sold prior to auction day. However, the decision to accept your offer is entirely up to the vendor.

What if my offer isn’t accepted prior to auction?

Don’t feel disheartened. Sometimes the expectations of the vendor differ from those of the market, or you may have underestimated the value of the property. Keep in touch with the listing agent as the vendor may re-evaluate their expectations after gauging the interest in the property.

Do I need to register to place a bid on auction day?

YES! If you wish to bid on auction day, you must be registered. This can be done on the day or beforehand, just speak with the listing agent. Just because you’ve registered to bid, doesn’t mean you have to place a bid. It’s a ‘better safe than sorry’ situation.

What if I can’t meet the standard terms and conditions of auction?

Speak to the listing agent prior to auction day to request alterations to the standard terms and conditions; including things like the settlement terms, deposit, inclusions or conditions of the sale contract. The alterations must be agreed upon by the vendor prior to commencing the auction, but keep in mind that the vendor reserves the right to decline your request.

How long is the cooling-off period for buying at auction?

There is no cooling-off period (hooray!). That’s one of the major benefits of buying a property at auction rather than through private treaty.

When should I organise a pest and building inspection?

Whilst pest and building inspections are not mandatory, they are highly recommended so you can make an informed decision, however, they must be conducted prior to auction day. As the successful buyer on auction day, you enter a non-negotiable commitment to purchase the property as-is. If you skip the pest and building inspection, you could be in for some nasty surprises down the track.