The secrets of a successful auction strategy, with Matt Chamberlain – Ep. 77
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For the latest episode of this bonus series of the property investing journey, Mike is joined by Co-Founder and Managing Director of Chamberlain Brown Property Acquisitions (www.chamberlainbrown.com.au), to talk through the process of buying at auction and sharing his secrets on how you can get the best auction outcome.
If you’ve ever been intimidated about bidding at auction, or felt yourself overcome with nerves, or even felt you’ve overpaid by as little as a couple of thousand dollars, you can’t afford to miss this conversation. This is a how-to guide for getting the most out of the auction process, whether you’ve appointed a buyer’s agent to act on your behalf, or you’re going it alone and just need some helpful hints to get you in front of the competition.
In this episode, Mike and Matt talk through the fundamentals of the auction process, including what you need to do once you’ve found a property you like that’s being sold at auction. This conversation starts at the very beginning of due diligence and steps you through the phases of pre-auction, auction day, and what happens if a property gets passed in.
Matt explains the checks you need to undertake to make sure you know what you’re bidding for, and talks about the importance of setting your upper limit before you turn up on the day. Mike and Matt delve into the importance of having a solid strategy and what that might look like when the bidding pressure sets in.
Matt shares helpful examples of how to get the upper hand against the competition and gives insights into the psychology of bidding and why it’s important to exude confidence to get the best price.
From the increments you need to bid in, through to Matt’s top three tips to win at auction, this podcast is essential listening that’s sure to become a critical component of your property investing toolkit.
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Mike is joined by Co-Founder and Managing Director of Chamberlain Brown Property Acquisitions, to talk through the process of buying at auction and sharing his secrets on how you can get the best auction outcome.If you’ve ever been intimidated about bidding at auction, or felt yourself overcome with nerves, or even felt you’ve overpaid by as little as a couple of thousand dollars, you can’t afford to miss this conversation.
What we cover in this episode
How often are properties going to auction?
The phases of an auction sale
The steps to take when the property you want to buy is going to auction
Identifying your walk away price
Every property’s negotiation strategy will be different
Reducing the nerves on auction day
Getting the other buyers to stop bidding before their limit
Changing the balance of the auction
Signs that the other bidders are tapping out
Matt’s top tips for bidding at auction
“Check your flood zones, check your proximity to public housing, check fire zones, check anything that might concern you or steer you away from the property” Matt 3:50
“Just because it’s listed for sale at auction doesn’t mean it has to sell on auction date. It could sell beforehand so if you’re holding all your cards too close to your chest when it comes to the real estate agent, they may completely forget about you” Matt 6:34
“In a market that you know there isn’t a significant amount of buyer activity it really begs the question is it the smartest approach to try and buy the property before auction because if you think about the seller’s perspective the only reason they would sell before auction would be if it’s a great price” Matt 9:35
“Give the impression that you’re coming in to win this and you might have an advantage that the other buyers don’t. Now whether or not you do have that advantage or not, the impression is really important” Matt 16:11
“It’s more so about creating the air of confidence and relationship with the selling agent and the auctioneer, of course they’re working for the seller there’s no doubt about that, but if we can create this illusion that ‘they must be best friends’, it’s not what the real estate agents typically want but it can be part of those seeds of doubt that might set in for other buyers” Matt 18:08
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The Geared for Growth property investing podcast was created by Mike out of a desire to provide value to his property investor clients. The idea is to source Australia's leading property investment experts and find how they and their clients are achieving exceptional results. The podcast is open to anybody interested in learning how to invest and the strategies you can apply to achieve exceptional results. You'll hear from buyers agents, mortgage brokers, strata managers, accountants and other professionals all sharing their insider knowledge.