Preparation is the key to auction day survival. The anxiety and stress you feel leading up to the big day can be slightly eased by being familiar with the auction process and having a plan for how to deal with issues that may arise.

Know the value of your home

Ask your real estate agent to supply auction sales results from similar local properties. Keep an eye on what sales have been recorded for the whole time that your property is being marketed, not just in the lead up to hiring an agent.

Decide whether you are prepared to sell for the sales price that properties like yours are attracting. What is your reserve to be? Take on board the feedback from your agent and consider the level of interest in your property. Settle on a figure that you are comfortable with but be realistic about your chances of achieving it. If you don’t set a reserve price, you must accept the highest bid (even if it’s below your expectations).

Work out your level of flexibility

Think about how important it is for you to sell your home on auction day. You might have already bought elsewhere and

be

desperate to make the sale or you might have a back-up plan that buys you more time. Either way, do your sums and work out how much you can afford to lower your price by so that you can walk away with a sale on the day.

Keep asking questions

At the pre-auction meeting with your agent, find out as much as possible about how the day will run. You should discuss issues like your reserve price, what happens if it isn’t met, how many bidders are expected to attend, what increments will the bidding rise in, and how you will communicate with your agent during the auction.

The auctioneer may suggest placing a vendor bid, so you will need to understand how this works. The vendor bid is a bid from the seller to help push up the price if it is still below the reserve. The regulations around vendor bids vary from state to state, but an auctioneer usually announces that the bid has come from you.

Avoid dummy bids

Never arrange for your friends to push the price up. Dummy bids are illegal and carry a hefty fine for both the seller and the person making the bid. To combat the practice of dummy bidding, anyone who bids at an auction must legally register in advance and provide evidence of their name and address.