Auction how to get it right

- you need to emotionally devastate your opponents.
....there are more, but I can't give away all my secrets :)

Wasn't one of them standing next to your opponents and ripping one of those silent by deadly farts. Emotional + chemical devastation = win :D

But in all seriousness. What you are effectively doing is preparing yourself with theory without any practical. Books will only take you so far. Attend as many auctions as you can. Participate where possible.
 
We got it, or I should say they got it, secured at auction, great buying, we paid market value for an area which is rising so am very pleased for them:)

BTW, who has auctions on a Wednesday night
 
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:rolleyes:

Oscar was great when helping me for my melbourne one.

For my perth property brought in sep 2012 (market was not quite hot yet), I also used the approach of waiting till the very end and going up in small increments. there was one other competitor at this stage, they were a family and each time they took longer and longer to bid again where as i was bidding straight away until i reached my limit. i think its a good approach.


I was also on the phone at this auction with a friend who was giving me a bit of advice so they could listen in. i wonder if others seeing you on the phone can benefit in creating a good image to help you win at auction. theres probably quite a few tactics like dress code etc that could help this

cheers
 
My plan for saturday is if no one bids. I will start off the bidding with a very firm and confidence voice (lol)

If there are other bidders. I will step back and come in at the end if still within my limit
 
Have a look at my post, and how I have won the last auction
http://somersoft.com/forums/showthread.php?p=1162996#post1162996

I started with going hard and trying to knock out the competition.
But what I have found is that, if you are against a serious buyer, by going hard not going to achieve anything, and only raising the sell price.

Out of this experience, the only advise I can comment would be, stick to your budget, and keep bidding until you reach that point, and no further. Very important
Slow and steady may get you over the line if there is little competition, and you can pick a bargain.

Going hard and strong may or may not knock out your competition as I have found
 
Thanks LW
Stuck to the budget so fortunately got it. The beauty of this deal is and there was so much fat as this is a 3 unit development site in Perth, so they had plenty of wiggle room if they had to go higher/over the budget and we discussed this, as it was a great deal. What I find as well when you identify a hot market that is rising by as much as $10K per month, 5K over budget is actually peanuts.

Cheers
MTR:)
 
I find it interesting that everybody has opinions on how to bid. Slow, fast, small increments, big increments, knockout bids, +$1 comments, dress "wealthy", appear uninterested, and so on. There are assumptions on what other people are thinking. There are assumptions on how to influence what people are thinking also. Honestly, I think in most cases it is hairy-fairy amateur psychology tactics that make bugger all difference to the result.

Why? Because despite what tactics are used, it's the highest bidder that wins.
 
I find it interesting that everybody has opinions on how to bid. Slow, fast, small increments, big increments, knockout bids, +$1 comments, dress "wealthy", appear uninterested, and so on. There are assumptions on what other people are thinking. There are assumptions on how to influence what people are thinking also. Honestly, I think in most cases it is hairy-fairy amateur psychology tactics that make bugger all difference to the result.

Why? Because despite what tactics are used, it's the highest bidder that wins.

I guess you have never bid against an idiot who gets easily gets pumped up by the selling agent during an auction.
 
I guess you have never bid against an idiot who gets easily gets pumped up by the selling agent during an auction.

Mmmm..... Oscar, I knew I got you to bid on my behalf for a reason, we did good... ooops you did good;)
 
I guess you have never bid against an idiot who gets easily gets pumped up by the selling agent during an auction.

You guess correct - I haven't bid under those conditions. But then again, maybe because I couldn't see the idiot, I was the actual idiot :D

But, I have attended a small number of auctions without bidding - approx 30 or so. Ranging from 0 bidders to who knows how many based on a crowd of approximately 100 people. And, despite all the tactics that people may or may not have used to influence things in whatever way they thought they could, it was still the highest bidder that won at those auctions - even if the highest bidder was an idiot.

I just think that in a lot of cases where people think they can so easily influence other peoples behaviour, they probably actually can't and don't.
 
Don't go in hard that creates a sense that the property is worth alot to other bidders. (property value is self fulfilling prophecy). If everyone thinks it's worth more then there is more confidence then more people will bid up the price.

Often auction guys plant a mole to make the starting bid so it's very high.

Instead you should:
1. Make sure you make the first bid. When they ask for a starting bid. You should make the as low as crazily possible. This shows to others this property isn't worth anything.

2. Go slow increments.

3. Before you go in make sure you have a reservation price. Don't let anyone know your reservation price.

4. After making a bid don't say something stupid like that's as high as I'll go. That's probably the most stupidest thing I see people doing? that just encourages others to outbid you. "Oh this guy is out as long as I out bid him even by $100 I'll get it." So what's the point of saying those words? so stupid? (I see a lot of Caucasians making this stupid mistake all the time.)

5. Don't get caught out by "winners curse" that is go over what it's worth just for the sake of winning. (I see a lot of Asians always doing that. Out bidding people just for the sake of "winning" only later to get buyer's regret for overpaying.)

6. Cheap shots: flush all the water out of the toilet and take a dump in the toilet 2 minutes before open inspection. Often those cheap real estate agents will turn off the water so they won't be able to flush the toilet. The smell and everything will put off the other 6 buyers and any other buyers so the property is all yours for the taking at a very low bid. Works 80% of the time. Save thousands if not tens of thousands.

7. dress poor like there is no way you can possibly afford it. this creates an illusion to other bidders and shakes them; making them think if i outbid this clown i'm gonna make a fool out of myself and over pay.

Good luck!:)
 
Hi Forum,

I just picked this up on the weekend at Auction for a client:
http://www.realestate.com.au/property-duplex+semi+detached-wa-carlisle-117211771

Basic tips:
  • Start the bidding low and be quick.
  • Confident voice and be louder without shouting.
  • Be assertive with the Auctioneer. They often like to take pot shots on low bids, good responses include, "What, you Buyer doesn't like money?" It's all just play so don't take it out on them, just have fun.
  • Always try to slow the bidding down, making small slightly above increments.
  • Don't hesitate to bid, counter bid straight back to the rival party.
  • Don't be afraid to look at the rival party at the end of the day it's kind of like the movie Baseketball.

I do plenty of other things, but it comes down to reading people and reading the situation. Unfortunately, if you don't go to auction frequently you won't obtain practice and these talents are often learnt by experience. You could always pay someone to bid ;)
 
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