Rich Minx

I went to my first-ever auction today. Not as a bidder - I’m not even close to being able to afford property yet - but since I’d lived in one of the properties being auctioned I decided to go along to watch the process.

A lot of people showed up, and the property was displayed on the projector as the auctioneer (with quick-fire wit and deep-voiced authoritah) whipped through the house’s virtues and started the bidding. “500!” piped up a voice at the back. “650!” retorted a fellow on the right. But soon it was down to two, and the figure crept up $1K at a time as each person consulted a mystery person on the phone before raising the bid again.

“$738 going once….going twice…SOLD!” Thud went the hammer and everyone applauded and left. From similar house prices in the area (and my intimate knowledge of the place) I didn’t feel it was worth quite that much, but local property prices are strong so maybe it will work out. I wonder when it will next go on the market, and for how much.

So by watching and chatting, I learnt the following about auctions:
1. Scratching your nose does not mean you’ll be a house-owner - the auctioneer has a keen eye for real bids.
2. There exists a condition called ‘auction fever’ where your firm limit becomes a thing of the past as the price rises and adrenaline kicks in. Have a limit - but expect to go over it by $5-$10K in the heat of the moment. Any more is stupidity.
3. Keep things in perspective - it’s just a possession. There are many more houses in the world.
4. Size up the people around you, by all means. But with real estate you can’t judge by appearances (that goes for people and houses).
5. Agents will cajole and wheedle to get you to raise your bid - they are very persuasive but they are not your friends. Don’t listen.

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