{"id":14717,"date":"2017-11-19T01:00:13","date_gmt":"2017-11-18T14:00:13","guid":{"rendered":"http:\/\/www.realestatetalk.com.au\/?p=14717"},"modified":"2017-11-19T01:00:13","modified_gmt":"2017-11-18T14:00:13","slug":"what-to-do-before-you-bid-at-an-auction-bryce-holdaway","status":"publish","type":"post","link":"https:\/\/channels.realty.com.au\/realtytalk\/what-to-do-before-you-bid-at-an-auction-bryce-holdaway\/","title":{"rendered":"What to do before you bid at an auction \u2013 Bryce Holdaway"},"content":{"rendered":"

It is easy to understand why buyers become nervous before bidding at an auction. There is a lot at stake. Bryce Holdaway<\/strong> is a buyer\u2019s agent and has the ideal suggestion for calming those pre-auction nerves.
\nTranscript:<\/strong>
\nKevin:\u00a0\u00a0<\/strong>Auctions are growing in popularity all the time. You need to have a strategy. It\u2019s very easy to get it wrong when you go to auction for the first time, both as a buyer and a seller. Let\u2019s have a look at some of the pre-auction dos and don\u2019ts, this time for buyers.
\nJoining me is Bryce Holdaway, a buyer\u2019s agent. So, I guess by definition, you should know what a buyer\u2019s agent or a buyer should do at auction. Bryce Holadaway from EmpowerWealth.com.au, and also the cohost of Property Couch.
\nGood day, mate. Good to have you on the show. Thanks for your time.
\nBryce:\u00a0\u00a0<\/strong>Thanks, Kevin. Auctions are a scary thing. Even for me as a professional, I\u2019m human, I have a bit of ice running through my veins as the auctioneer gets into full swing.
\nKevin:\u00a0\u00a0<\/strong>Do you? I would have thought that someone like you who\u2019s been in front of the camera \u2013 of course, you\u2019ve done a lot of lifestyle shows and had your own show for many years \u2013 and also tuning up to a lot of auctions, nerves would be the last thing you\u2019d have.
\nBryce:\u00a0\u00a0<\/strong>Yes. I actually use it as a positive. And you know yourself, Kevin, the time that you go to hit record and you have no nerves, sometimes you\u2019re not performing at your best. For me, if I\u2019m going to an auction, I really care about the outcome for my client. There\u2019s no emotion in it for me, but I want to get the lowest price possible and I want to have a really good strategic play at the auction.
\nKevin:\u00a0\u00a0<\/strong>Bryce, what are some of the dos and don\u2019ts for people? How can they prepare before they go to an auction?
\nBryce:\u00a0\u00a0<\/strong>My number one is before they even get to the auction they want to buy at, go to other auctions on the weekends prior. Most people would rather be in the casket than deliver the eulogy, so that public speaking environment that you are in in an auction, on public display, the auctioneer has very crafted skills to try and get you to pay as much as you can. That\u2019s a daunting process for someone who\u2019s never done it before.
\nSo, what I\u2019d say is go along to some auctions \u2013 ideally for the auctioneer that you\u2019re about to work with, the one you\u2019re looking at \u2013 and see how they roll. See how the process works, see what happens when they go inside, see the change in tone, see how they drop it down, because you\u2019re going to learn a heap of intel. It\u2019s like a mock auction before you get to the main event for your own one.
\nKevin:\u00a0\u00a0<\/strong>Is it a bit like a battle between the bidder and the auctioneer? The auctioneer sits in the middle, doesn\u2019t he? Have you got to understand what he\u2019s doing?
\nBryce:\u00a0\u00a0<\/strong>Yes, absolutely. You have to know that in any real estate transaction, whether it\u2019s private sale or auction, the nirvana is two people fighting it out. It\u2019s this big public display of competitiveness. But the thing is with an auction, it\u2019s a public display of status, because you don\u2019t want to lose in the money stakes to someone else because you really want to show.
\nIt\u2019s like when you\u2019ve got a beautiful house and people drive up to it, it\u2019s a representation of your status. It\u2019s also the same in an auction environment. You don\u2019t want to lose, particularly when there\u2019s a crowd, particularly once the adrenaline is kicking in, so it\u2019s important that you know what the process looks like.
\nKevin:\u00a0\u00a0<\/strong>How do you prepare for the structure of the auction? You obviously go in with a figure that you\u2019re prepared to bid to, but is there a figure that you won\u2019t pay? The figure you have in your mind, is it always less than what you would pay? That\u2019s what I want to try to find out.
\nBryce:\u00a0\u00a0<\/strong>What I try to do is get a 50%, an 80%, and a 90%. A 50% chance of getting it at this price is when there\u2019s not a lot of competition, but in Melbourne and Sydney, there\u2019s been a lot lately. So you want to have really three prices, where there\u2019s an 80% chance to get at this price, and then the highest price is there\u2019s a 90%. There\u2019s always someone who\u2019s going to come along and no matter what, they\u2019ll throw emotion and they\u2019ll beat you through emotion. But in some markets, you need to have that little bit of stretch.
\nFor me, I\u2019m prepping my clients to have three prices and an indication of where we\u2019re going to end up. I rarely see it being at the 50% prices in the markets of Melbourne and Sydney. It\u2019s usually around that 80% or 90% in a lot of cases. In some cases, you just miss it altogether.
\nKevin:\u00a0\u00a0<\/strong>Yes, because the agent on the floor will try to put a lot of pressure on you to increase your bid, as well. How do you resist that?
\nBryce:\u00a0\u00a0<\/strong>Just knowing what they\u2019re up to. I guess a lot of auctioneers know that buyer\u2019s agents won\u2019t fall prey to that, but I try to drive the increment of the bids down to the smallest increment as quickly as I can. The auctioneer loves to a $10,000 or a $20,000 bid; I want to get it to $1000 as quickly as I can. But a very good auctioneer won\u2019t allow me to do that early in the piece; they\u2019ll only allow me to do that more towards the pointy end.
\nIn response, I\u2019ll throw out, \u201cI\u2019ll give you $1000.\u201d They\u2019ll say, \u201cNo, I\u2019m not accepting $1000 bids, but I\u2019ll take $10,000.\u201d I\u2019ll say no. A lot of people don\u2019t realize that they can just say no. Even if they want to keep bidding and want to keep staying in the game, just sit back and wait. So, really, it\u2019s about letting the agent know, \u201cI\u2019m a professional, you\u2019re a professional; let\u2019s see where we get to in the end.\u201d
\nBut I\u2019m not trying to outsmart the agent. I know what they\u2019re doing and I know what strategy they\u2019re employing. Most of my time and energy and effort is spent on my fellow bidders, because I want to look for signs that they\u2019re getting close to their limit. I want to professionally intimidate them. I want to be in a way that they just say, \u201cOh, he\u2019s going to buy it no matter what,\u201d and they keep their hand in their pocket. That\u2019s where I spend most of my time and energy focusing on when I\u2019m bidding at an auction.
\nKevin:\u00a0\u00a0<\/strong>Yes. As a bidder, you have to look confident too, don\u2019t you? That\u2019s part of that bluff, bluffing other people out of bidding as well.
\nBryce:\u00a0\u00a0<\/strong>Yes. It\u2019s two parts strategy, one part bluff. I\u2019ve bought more properties than I care to list on my last bid where I have nothing left in the bank. The client and I have agreed on a predetermined price, and I\u2019ve just thrown it out there. And if someone gave another $1000, I\u2019m out. But it\u2019s all about what I\u2019ve done in the lead up to that last bid \u2013 as I said \u2013 to professionally intimidate them and read the body language and so on, so they give in to me.
\nKevin:\u00a0\u00a0<\/strong>Great stuff. Bryce Holdaway from EmpowerWealth.com.au buyer\u2019s agents. Bryce, thank you for your time. Great talking to you.
\nBryce:\u00a0\u00a0<\/strong>Pleasure.<\/p>\n","protected":false},"excerpt":{"rendered":"

It is easy to understand why buyers become nervous before bidding at an auction. There is a lot at stake. Bryce Holdaway is a buyer\u2019s agent and has the ideal suggestion for calming those pre-auction nerves. Transcript: Kevin:\u00a0\u00a0Auctions are growing in popularity all the time….<\/p>\n","protected":false},"author":176692471,"featured_media":14718,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[32,33,10,11,13,22,25],"tags":[101],"class_list":["post-14717","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-buying-a-property-topic","category-case-studies-topic","category-kevin-turner-sponsored-channels","category-kevin-update","category-latest-story","category-research-topic","category-sponsored-channels","tag-podcast"],"yoast_head":"\nWhat to do before you bid at an auction \u2013 Bryce Holdaway - Realty Talk<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/channels.realty.com.au\/realtytalk\/what-to-do-before-you-bid-at-an-auction-bryce-holdaway\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What to do before you bid at an auction \u2013 Bryce Holdaway - Realty Talk\" \/>\n<meta property=\"og:description\" content=\"It is easy to understand why buyers become nervous before bidding at an auction. There is a lot at stake. Bryce Holdaway is a buyer\u2019s agent and has the ideal suggestion for calming those pre-auction nerves. 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