Auction advice anyone?

[willair]

willair, don't you have to be a registered bidder at the auction to participate? At least that was my understanding here in SA. How do you claim that you are not interested and then still register to bid?

Hobo-jo,yes you have to register at Auctions in Brisbane but there may be up too 5-8 people there on the day of the Auction working for the
REcompany,plus the vendors family and a few ringinsand in Qld as i have seen so many times they will stand next to you and try and add the little extra help in those few brief minutes,the best one a Lady agent pulled on us was she stood right next to me and the "Boss"on her mobile in the short skirt and high heels bidding away for as she told us a interstate buyer who trusted her to do the deal,the funny part was while she was pretending to bid her phone rang,"LOL",I just ripped our bidders card and threw it in her fake euro bag and walked out the gate..willair..

 

[Peterw]

willair, its hard to believe that they would try such a stupid stunt.

 

[willair]

willair, its hard to believe that they would try such a stupid stunt.

Peterw,matey you may think i'm unduly pessimistic but over the years you become hardened because every property boom i have seen always ends the same way,just that this boom has been going on for the last 10 years,prior to that in the early 1990's property went nowhere for years mainly because money lending was vastly different back then i just think we are in for a gentle slowdown,in fact with the way the listings and starting to sit,as the for sale signs fades with the mug shoot of the high flying agent,, IT costs a lot of money too keep any RE office going and from what i'm told some are only holding the waterline with there rent rolls ..willair..

 

[Piston Broke]

There are many, many strategies as you know. This may be old hat, but it works for me. I do stand out but that is a hazard of my own frame. I am 6'2" and 120kgs - there is no way I can hide in a crowd of (mainly smaller) people. I think sometimes I do physically intimidate some bidders.

lol
I reckon you should stand behind everybody else, so they all turn and look back and see this tall guy bidding. And bid in the smallest possible amount so they get a sore neck lol.
You don't need to hide, just stop them from bidding.
A deck chair, esky full of VB and a flanny shirt can maybe work too.
Whilst i don't like the silly stints, I do like to play with the auctions and REAs.
One of these days I'll turn up dressed exactly like the REAs and see what happens when I bid.

 

[Peterw]

Guys, a discussion on how to control the auction process, has been going on, as long as I have been in the business, and that is over 30 years. If the auctioneer is competent, then I doubt if any tactics will have an influence, and I have seen other bidders actually, "turn" on bidders trying to hijack an auction. You must remember, the auctioneer does not have to accept a bid, and another person, who also want to buy, may think you low bids a nuisance and then choose to make big bids, thinking they will blow you out. In my mind, other bidders are your competition, and each auction will be different. One tactic may work one day, and then back fire the next. If any thing, I believe people who have attended many many auctions, and believe that they can then start to read both the bidders as well as the auctioneer, may be successful on a more regular basis.. In my mind, do your home work, then do some mor ehome work, and if you have time, do some more home work, be certain of the "value" range that you have indentified, and then before the auction, calmly decide what you want to do, if the bidding goes to the various stages of your value range. How will your lifestyle handle the "price" you pay. Do not let yourself me swept up in emotion on the day. Miss this one, there will be another one for you. Good luck

 

[Thesnowyforest]

Hehe OK - get answers to all the Qs I asked.
Also stand beside the auctioneer. It lets you see who you are bidding against.....and the agents hate it. So you can kill 2 birds with one stone.

I've had a few ask - "Would you like to stand over here sir?" motioning with their hand, back in the crowd. "No, I'm fine here thanks", I reply

The others have given good advice too.

That is gold! Gave me a good chuckle.

 

[Bargain Hunter]

So startingnow how did the auction go, and did you try any of the advice?

 

[Piston Broke]

Guys, a discussion on how to control the auction process, has been going on, as long as I have been in the business, and that is over 30 years. If the auctioneer is competent, then I doubt if any tactics will have an influence, and I have seen other bidders actually, "turn" on bidders trying to hijack an auction.

There's no point controlling the auction, nor trying to "influence" and auctioneer.
It's about buying it cheap, or making sure they don't.

"turn"? And do what exactly?
There's nothing anybody can do if a bidder lawfully bids.
That others get annoyed is there problem.
I've seen some people annoyed with small bids, they always bid up by 10k if they wish.

 

[startingnow]

well that was a fun experience. I used so much advice i got from here. as soon as we got to the auction we were hounded. I told them politely they are probably better speaking to the other potential buyers, as im only looking for a bargain today.

The price had kept going up every phone call we got from the REA this week, so we thought we were out of the running, but went down anyway.

Auction started as a vendor bid 50k under our limit, and there was no bids until they nearly put the hammer down, and then a few little bids until it stopped and they went n to speak to the vendor. We still had not bid, because it still hadnt met the reserve so we thought there was no point. We still had 20k to go at this stage.

They came out again saying whover had the highest bid from there got the EXCLUSIVE rights to talk to the vendor. They kept looking at us, and we gave nothing, as i have been told that is a bit of a hoax anyway.

One person put in a last bid that got them the exclusive right to talk with the vendor and negotiate a price. We still had 10k to go, but imagined it was still a long way to go, so we walked back towards the car laughing, waiting for what would happen next. We must have taken 10-15 footsteps before our real estae agant "mate" chased us asking what had happened? we jut said we were after a bargain today, then he asked us to wait around for the negotiations to end and then we could have a chat with the vendor.

Exclusive my butt! thanks for whoever warned me about that. They were instatntly trying to start haggling the price up between us as the person was inside trying to make a deal So i gave him my best price as we turned our backs (best price they had so far) and told them that was it, if they wanted it, they had our number. So we didnt bid at all, but got to put in the highest bid, without getting to caught up in the emotional rollercoaster part. Our "mate" wasnt so friendly from there. i wasnt walked back to the car with the love and support i was getting at previous inspections. hehe.

I havent heard from them yet, but i assume it hasnt been sold, as there is no sticker up on the board when i went passed 20 minutes ago.

If we get it its a bargain. If not, we just keep looking. No hurry now, just keep an eye out for the next one. Thanks everyone for all the advice. We learnt allot from it.

cheers starting now

 

[Piston Broke]

Well done keeping your "cool", it's not always easy in those situations.
But you have to have a criteria and stick pretty close to it imo, as there's always another bargain round the corner. No use blowing your wad on an expensive acquisition i say.
Sure your gonna lose a few by not chasing prices (and REAs), but there's plenty more out there.

 

[startingnow]

well, i just checked on the website, and saw that it was passed in

Dont know what happens now, but hopefully their price expectations get lowered a little

 

[Bargain Hunter]

There's no point controlling the auction, nor trying to "influence" and auctioneer.
It's about buying it cheap, or making sure they don't.

You can't influence the autioneer, you can however influence other bidders because generally they lack experience and if the money is tight you never know.

I have been at auctions where people have more money then sense and they could have bought better at private treaty and I have been at auctions where one more bid would have got the opposition the property but they never knew. However you're right, the overall strategy is buying at the lower end of your bid range.

One person put in a last bid that got them the exclusive right to talk with the vendor and negotiate a price. We still had 10k to go, but imagined it was still a long way to go, so we walked back towards the car laughing, waiting for what would happen next.

We put a pre-auction bid on a property which wasn't accepted. We were on our way to the auction and thought, why are we bothering we can't afford it. Still, we went and the hammer fell $500 over our pre-auction bid. The property was ours.

You had $10k up your sleeve and didn't bid. I wouldn't be patting myself on the back, get in there and bid next time. You need the experience.

Exclusive my butt! thanks for whoever warned me about that.

I've been to many auctions and have never had a REA chase me. Given that you didn't bid I can only assume that you indicated a strong desire to buy during inspections which is something we generally don't do.

I still maintain the best position is to be the underbidder however agree that if you have the time it can be worthwhile lingering around to see what happens.

Regards

Andrew

 

[Ski-bum]

One person put in a last bid that got them the exclusive right to talk with the vendor and negotiate a price. We still had 10k to go, but imagined it was still a long way to go, so we walked back towards the car laughing, waiting for what would happen next.

I agree with Bargain Hunter - with still 10K up your sleeve, why didn't you bid? I know you mentioned the property was passed in eventually, but what if the vendors ended up selling to the underbidders at your price? Would you have regretted it, knowing that you had done all the DD and preparation for this property and it sold for the price you were willing to pay?

Exclusive my butt! thanks for whoever warned me about that.

Having been to many auctions, I wouldn't recommend this attitude, especially if it is a hot market. I'm assuming you're looking in Melbourne where most of the properties are for auction, so please don't be as blase (spelling?) about it or you WILL miss out.

My thoughts with auctions are, you have a limit, just bid until you reach it

 

[startingnow]

it was 10k to our maximum limit was the final bid. but it was still had not made the bid. when we told the REA after they chased us, they said it wasnt enough anyway.

 

[Bargain Hunter]

it was 10k to our maximum limit was the final bid. but it was still had not made the bid. when we told the REA after they chased us, they said it wasnt enough anyway.

There are many reasons people attend auctions.

1. Buyer - serious contender
2. Participant - learning by participating
3. Spectator - had some time thought I'd pop in
4. Learner - see how an auction works before plunging in
5. Observer - find out what the market is doing
6. Dreamer - wish they could but

How do you see yourself? Did you attend the auction knowing that your limit had no hope of securing the property?

We have missed out on getting bargains because we didn't have our finances in order. Rookie mistake.

We have attended auctions not intending to buy and registered in the middle of the auction because the opportunity was too good to miss.

Nowhere does the phrase you've gotta be in it to win it apply more then at auction.

In regards to the REA's advice after the auction. We have made bids that we thought would not have had a shot and yet walked away with the property. Remember the vendor may also be under pressure to sell but has not informed the REA.

Regards

Andrew

 

[startingnow]

yeah i think your right bargain hunter. I did put our limit down during the week. I was more scared of paying market value or more than i was keen on securing the property now that i look at it.

 

[Bargain Hunter]

yeah i think your right bargain hunter. I did put our limit down during the week. I was more scared of paying market value or more than i was keen on securing the property now that i look at it.

That's OK, you don't go to auction to pay retail.

 

[pgabs]

Public Trustee Auctions

We are about to attend an auction for a property being conducted by the Public Trustee for a deceased estate here in Brisbane. Does anyone have any experience/commments on if they differ from your normal auction held by a REA? I am assuming we won't have the usual REAs running around nagging bidders but this is only an assumption. Any observations of others experiences would be appreciated.

 

[Experimentee]

Some conflicting advice here. Slow down the bidding or bid immediately after the previous bid?

Is there really any evidence that these tactics actually work, ie you bought the property for a lower price than what you would have if you hadn't used these tactics?

 

[Propertunity]

Slow down the bidding or bid immediately after the previous bid?

Yes, both of these but at different stages of the auction.

Is there really any evidence that these tactics actually work, ie you bought the property for a lower price than what you would have if you hadn't used these tactics?

There is no way to tell is there?