Are you bidding on a property at Auction this weekend or in the coming weeks, but have NO IDEA what you’re doing?
Trust me, you’re not alone!
Here’s how to ensure a winning result, using my 4-Figure Pricing Strategy, and a certain mindset going into your Auction…
Let’s be honest, anyone who has ever attended a property auction will know just how stressful the whole process can be. Things can get intense really quick and whether you’re a bidder or a a mere by-stander, some auctions can be better entertainment than a night out on the town with your friends.
Now with that said, here’s how you can approach your auction with a lot more clarity, (and strategy)!
My role as an Independent Buyer’s Agent and Auction Strategist is to create a strategic auction plan that is a failsafe winner for whether you buy the property, or walk away from it.
This is how it works.
You do this by setting your expectations in a way that allows you to be completely satisfied despite two different scenarios – winning the auction and securing the property OR allowing the property to be passed in or sold to another buyer for an amount you would never have paid.
You see, it’s all about creating a win / win mindset, despite either of these scenarios playing out.
How To Set Your 4-Figure Pricing Strategy …
One of the key steps in this Auction Strategy process is to set not one, but FOUR prices, when it comes to your walk away position.
- The first price, I call your Yippee Price – the price you would be jumping for joy screaming “yippee!” if you bought the property for this price.
- The second price is the price you would be “happy” to secure the property for. In other words, this is the Fair Price you feel the property is worth, and you would be willing to pay.
- Now comes the THIRD price, which is your Final Walk Away Price. You set this price by asking yourself the key question on every Buyer’s mind – what would I be prepared to pay as a maximum price for this property?
But rather than look at what the maximum you would pay, ask yourself this question instead…
“What is the price I am prepared to LOSE THE PROPERTY FOR?”
Now, there is one more Price I encourage my Buyers to agree on when we go to Auction.
I call this the Buffer Price.
It’s a fourth price that is above the Final Walk Away Price where the Buyer adds on just a little extra as a “Buffer” to their final Walk Away Price.
This becomes your Absolute Final Walk Away Price and you STICK TO IT.
I repeat, you Stick. To. It.
1. YIPPEE PRICE - $900,000
2. FAIR PRICE (RANGE) - $1,000,000 TO $1,100,000
3. WALK AWAY PRICE - $1,150,000
4. BUFFER PRICE - $1,177,000
No matter what happens during the auction and how much pressure you are feeling, the rule is not to budge a dollar over this final figure – your Buffer Price.
Oh, and one other tip, make your final Buffer Price an “odd” number.
Most buyers think in round, even numbers and you might just pip someone at the post if you go a little higher than the typical “even” number scenario. As a hint, I like using 7’s in my Buffer Price mix.
This is a very quick run-down of how I set a strategic pricing plan, and just ONE step in the overall Auction Strategy.
To learn more about how to best set your budget figures, in particular, your Buffer Price, PLUS how to deliver your pricing strategy as strategic, confident bids on the day of the Auction, you’ll need to commit to me a little more.