Auction how to get it right

[MTR]

Hi All
We are going to auction, don't normally go down this road in Perth.

Really not sure how to approach this, wipe out the competition.

Have been told go in low increments, slow and steady, keeping the price low.
Go in hard scare off the competition.

A little more about this property, its in very high demand and this market is rising fast, there are currently 6 people I am told who will be also going for this property. This area has been hot and still very hot, it wont go for a bargain price.

We have a cut off price and a friend who is a valuer also provided info on this, however values go out the door when a particular market is hot.

Back to what do we do to achieve the best result???? Have you used a strategy that has worked??
My thoughts are go in hard and scare the competition, as majority will probably expect a bargain as the property needs renovating. This property will attract home buyers who want to add value and developers.

Thanks for help

 

[thatbum]

I prefer a slow, low-increment approach. I think making the auction painfully slow is more likely to take any emotion out of the other bidders (exception frustration I suppose).

I don't think there's a one "best" approach.

 

[Big Will]

1. Really not sure how to approach this, wipe out the competition.

2. Have been told go in low increments, slow and steady, keeping the price low.
Go in hard scare off the competition.

1. Drive your car really hard into the crowd, that will usually work

2. I find usually stick to your budget and bid hard till you get there, if you start to umm and ahh about it people will think you are close to pulling out.

This will then cause them to think oh another 5k and they will be out, then you bid back and they go another 2k and they should have and you bid again.

Where as if you come over confident they will go well it doesn't look like we will beat them so lets give up.

Golden rule stick to your budget and what you feel it is worth, be prepared to walk away if you think it is far over value. However 5k in 30 years is nothing

Good luck and keep us updated

 

[r3ckless]

subscribed as I am attending my first auction this Saturday also so subscribed.

Im thinking of responding to any bid made from other bidder(s) striaght away by $1,000.

After getting some friends to suss out the agent, looks like I am the only person to have put in an offer...... and only one B&P test conducted..... so I think it will be between myself and one other.... home is nice, doesnt need any improvements...

 

[MTR]

I think go in hard and intimidate and of course have a cut off point. However, if its the sake of 5K that is nothing as there is plenty of fat in the deal.

Go hard or go home

thanks

 

[S.T]

Dress in a tracksuit!

 

[Joe D]

I suggest you hold back until the auction stalls or it slows right down to bids of $500 or $1000. If it still is below your amount then strike as a new bidder with a bid several times the current increment.

It will knock the confidence out of the current under bidders.

If it goes past your set amount, then still okay as you haven't had to show your hand.

 

[Propertunity]

There are all sorts of strategies, I've had opportunity to use them all, lots of times .


For example:
Open the bidding and close it too.
When other bids start to stall, double or triple the current increment and bid that.
Just keep bidding $500 more than anyone else.
Generally, if you know the reserve will be say $950K, don't start the bidding at $800K and get everyone emotionally involved to come along with you to the pointy end - that's just asking for trouble.
If someone Opens at $800K (in the above example) go straight back at $900K - you need to emotionally devastate your opponents.
....there are more, but I can't give away all my secrets

The only thing I would say is that at the end of the day, the person with the most money, who is prepared to spend it, wins!

 

[see_change]

My personal preference is to go in hard and fast once you start bidding, but know where you're going to . Often a bigger jump will help knock others out .

You can either wait for others to bid and then come in when they slow down , or come in hard from the start .

With a slow drawn out auction ,because it's only going up in smaller amounts , it's easier for the opposition to justify making smaller bids .

It comes down to how much the others want it .

Though The best way to succeed is to make the highest bid .....

Cliff

 

[marg4000]

You can play whatever games you want, but the person who is prepared to pay the most will win.
Marg

 

[BLTN]

You can play whatever games you want, but the person who is prepared to pay the most will win.
Marg

Yes, but how much they are prepared to pay depends on what games you play.

 

[marg4000]

Not necessarily.

Most people have a limit and if another person's is higher then they will win.
Marg

 

[see_change]

Not necessarily.

Most people have a limit and if another person's is higher then they will win.
Marg

I haven't bid on enough houses to get the feel of how people react with PPOR's but we have bought quite a bit of art and furniture auctions and in those , you can certainly put other people off by how you bid and I backed off on occasions and thought " they can have it ..."'

We did however buy three IP's on one day in Logan a few years ago and bidding against other investors , I felt coming in hard and quick got the other people to back off especially by the third one ...

For someone who is organised and committed , games probably won't make a difference , but most people aren't

Cliff

 

[MTR]

There are all sorts of strategies, I've had opportunity to use them all, lots of times .


For example:
Open the bidding and close it too.
When other bids start to stall, double or triple the current increment and bid that.
Just keep bidding $500 more than anyone else.
Generally, if you know the reserve will be say $950K, don't start the bidding at $800K and get everyone emotionally involved to come along with you to the pointy end - that's just asking for trouble.
If someone Opens at $800K (in the above example) go straight back at $900K - you need to emotionally devastate your opponents.
....there are more, but I can't give away all my secrets

The only thing I would say is that at the end of the day, the person with the most money, who is prepared to spend it, wins!

Damn you, should be sharing your inner secrets with the crew.
Good advice nonetheless. thanks

 

[MTR]

My personal preference is to go in hard and fast once you start bidding, but know where you're going to . Often a bigger jump will help knock others out .
Cliff

Me too, like this.
I want to go in hard and really know them off. Also, I think we are in a position to pay a little more than its worth because we know the numbers are very good, where perhaps other investors wont see this.

We will see soon and will report back

 

[Hodge]

I've got a fairly good success rate at auctions. I wait till the very very end when the auctioneer is just about to sell the property and then start bidding in $1000 increments. No point bidding when 2 or more are bidding.

I look at it as a fist fight. Two people are fighting, the winner has to face me. By then hopefully they don't have any fight left in them and give up.

 

[oc1]

I've got a fairly good success rate at auctions. I wait till the very very end when the auctioneer is just about to sell the property and then start bidding in $1000 increments. No point bidding when 2 or more are bidding.

I look at it as a fist fight. Two people are fighting, the winner has to face me. By then hopefully they don't have any fight left in them and give up.

This works well in a normal or quiet market. Best to go hard in a hot market.

 

[MTR]

Hi Oscar
Was going to email you, thinking the same go hard, you are the expert when it comes to auctions.
This one is for my niece, so I am tagging along, yeah right like I am the expert of auctions

 

[vaughan]

 

[ZachAnSel]

I'm go hard go early as well. Let say start 800, reserve 950. I bid 910k. My 2c