Sometimes, prior to an auction, a selling agent will tell you that another party has put in a higher bid and ask you if you’re prepared to place your offer.

So having no idea how much the other party is offering, you end up making a “blind bid” before the auction. This is called a silent auction or “Dutch Auction”.

Sometimes it may be hard to tell if the other bidders even exist, so be wary of getting drawn into this type of bidding war.

This can go back and forth a few times and this type of bidding can often, push the price of a property beyond reason, because people start bidding with their egos.

The answer? Walk away when you reach your limit.

 Often, if an agent is calling for pre-auction offers, it can be a good indication that the vendors are keen to sell quickly, so the chances of getting a better deal may be quite high.

Never be too hasty or impatient when it comes to auctions- waiting is the greatest weapon in negotiation, patience will always give you the upper hand.

Keep your cards close to your chest and never reveal how much you are willing to pay so that you maintain the advantage.

Want to know more about getting your rental income paid directly to you and not a Property Manager ?

Use RealRenta for Free for up to 2 months to manage your investments and never pay a Property Manager again.

Visit www.realrenta.com.au