Discouraging ghost bidders at auction

We're looking at buying a particular property via auction in the near future.
I am always weary of ghosts, trees, and vendor friends sticking their hand up.

It occurred to me tonight to have a friend conspicuously video the gathered crowd. I thought it might spook naughty people into not putting their finger up and the auctioneer to not take bids from trees.

Does anyone know if doing so is illegal, or that an auctioneer has any right to stop the videoing, or ask the video-er to be removed from the vendor's property?
 
I also realize some BAs slow the pace of an auction when bidding, totally unintentionally of course, by pretending to discuss further bidding with their client on a mobile.....and feigning mobile reception problems to slow things down....when all the time the client is standing right beside him.

Anyone tried this stuff, and its pitfalls,....and can you recommend other tricks people try on.

I know this stuff is more common in Sydney and Melbourne where Saturday auctions are national sport.
 
ghost bidders

At Auction..in most cases, the property has a reserve price..until this is reached, the house won't sell..so, does it really matter how the bidding gets there, so long as it gets there..this depends on how many people show up, how many dummies are planted by the vendors/agents- who may even register under assumed names..
Hypothetical: You want to buy a house worth 500k (to you)..
The vendor wants 520k min (reserve - unknown to you)
The agents have been telling all & sundry the house will sell for under 500k
they ramp to bring in the bidders and create competition.
You and unknown others bid from 460-490k..the bidding stalls...have you bought it yet? - no..will you bid higher?..depends..on what?..on someone else kicking it off again at 495k?..will you bid?...maybe..do you want it?..bam! outta nowhere....someone bids 495k..do you go home?..no..you want it?...yyyeeesss!!!..
ok... go 500k..but not a penny more...another unknown bids 510..has the house sold yet?- no..why don't vendors just drop their expectations?...depends what the agents know-whether they have genuine buyers who they can push up and out of they're comfort zone...to 515k-520k
(If they don't have any buyers, they may try to get the vendor to drop the reserve- to meet the market...watch for this...agent/vendor discussion...too much pressure on the vendor means lack of buyers) If the vendor is stubborn/realistic and keeps reserve high..then it's up to the agents to create interest...how?...by pulling bids from dummies/trees/ghosts..
Your agent pushes you to 512k...maybe there's another buyer...
maybe not...have you bought it yet?...no...will you go higher?...''doubt it'' - you're over your limit as it is...but maybe..depends..how bad do you want it?...how long have you looked?..how many have you missed because you wouldn't go that bit more?..your agent knows this...he knows this is for you/family/kids etc..he pushes and pushes...you scream and pull back..
but bid higher anyway to 520k...are there other buyers?...maybe...is your agent rushing off to speak to the vendor?..
does the vendor agree to 'put the property on the market'?...yes?...now it's on the market!...are there any other bidders?...no..ok it's yours - how you got there doesn't matter anymore does it?..it's yours!....if another bidder comes in, then you know you're in for a fight, 'cause 'it's on the market-has to be sold'..has the agent done the right thing?- you bet...he's got the vendor what he wanted..the reserve at least...want the agent on your side?....list the property with him when your turn to sell comes...or enlist a buyers' agent....but be prepared to pay the commission..
My advice: wait as long as you can in the bidding- until 'it's on the market'
then bidding will all be genuine/for real...
 
We're looking at buying a particular property via auction in the near future.
I am always weary of ghosts, trees, and vendor friends sticking their hand up.

It occurred to me tonight to have a friend conspicuously video the gathered crowd. I thought it might spook naughty people into not putting their finger up and the auctioneer to not take bids from trees.

Does anyone know if doing so is illegal, or that an auctioneer has any right to stop the videoing, or ask the video-er to be removed from the vendor's property?
Winston,the only auctions that are upfront in QLD are with the Public Trustee,all the rest it's open slaughter,i have seen some shockers where
the agents stand next too the bidders telling them to go higher-higher while all the time they are bidding against the candle on the back deck
there is a art to Auctions,and if you are bidding you go into a different world for the 5-10 minutes while it's all happening,btw i know for a fact
at the Public Trustee the film everything that happens,so if they can do it
i don't see why you can't,the best one an agent-ba:rolleyes: ever pulled on me was she was standing next too my wife and myself,on the mobile bidding
on the phone she was playing the part very well till her phone rang,do i need to say anymore...willair..
 
Winston,the only auctions that are upfront in QLD are with the Public Trustee,

well we didn't have to play silly buggers at the auction this morning. ;)

all the rest it's open slaughter,i have seen some shockers where the agents stand next too the bidders telling them to go higher-higher while all the time they are bidding against the candle on the back deck there is a art to Auctions,and if you are bidding you go into a different world for the 5-10 minutes while it's all happening,btw i know for a fact at the Public Trustee the film everything that happens,so if they can do it i don't see why you can't,the best one an agent-ba:rolleyes: ever pulled on me was she was standing next too my wife and myself,on the mobile bidding
on the phone she was playing the part very well till her phone rang,do i need to say anymore...willair..

an oldie but a goodie
 
an oldie but a goodie
Well Winston,did you beat the sysytem on the day???,at least if the auction was during the week the people that turn up know what they want and have a price in mind,I'm interested to know if you bought and if you had any problems,because from what i'm told the auction powerhouse is starting to run out of steam..willair..
 
Well Winston,did you beat the sysytem on the day???,at least if the auction was during the week the people that turn up know what they want and have a price in mind,I'm interested to know if you bought and if you had any problems,because from what i'm told the auction powerhouse is starting to run out of steam..willair..

yeah Will.....4-5km north of the cbd, 650m2, detached dwelling, Res A Demolition Code and Residential Design - Character Code.
nearly the worst house in nearly the best street, dead end, child care, library, bowls club, soccer and rugby league clubs, significant park and recreational reserve, all within 1km. catchment area for one of Brisbane's top 3 state primary schools, several significant LGA and senior State polies live in this precinct.

6 bidders took it over reserve, and we bid 1k more than the attractive wife
of a local builder, who specializes in doing Qld'er renos. We had a chat afterwards and were on the same page. Our cap was 2.3% above hers.

happy to give you the address via PM.


no signs of the market cooling where we are looking, and the 'mid week' auction clearance rate is a different ball game.
 
yeah Will.....4-5km north of the cbd, 650m2, detached dwelling, Res A Demolition Code and Residential Design - Character Code. nearly the worst house in nearly the best street, dead end, child care, library, bowls club, soccer and rugby league clubs, significant park and recreational reserve, all within 1km. catchment area for one of Brisbane's top 3 state primary schools, several significant LGA and senior State polies live in this precinct.

6 bidders took it over reserve, and we bid 1k more than the attractive wife of a local builder, who specializes in doing Qld'er renos. We had a chat afterwards and were on the same page. Our cap was 2.3% above hers.

happy to give you the address via PM.

no signs of the market cooling where we are looking, and the 'mid week' auction clearance rate is a different ball game.
Winston,well done i don't need the address from what you have said
i have a rough idea of the area,i hope it works out for both of you..
good luck willair..
 

...
6 bidders took it over reserve, and we bid 1k more than the attractive wife of a local builder, who specializes in doing Qld'er renos. We had a chat afterwards and were on the same page. Our cap was 2.3% above hers.

happy to give you the address via PM.


no signs of the market cooling where we are looking, and the 'mid week' auction clearance rate is a different ball game.
It was an entertaining auction, the lady in black kept sending questioning stares in your direction every time you raised your bid.
 
Why would anybody even bid until the auctioneer says at least "going twice"?
And what's the problem with "slowing down the auction"?
What's the hurry? You spend a week on research and then are in such a hurry for 60 min? Take the esky with you!
I could stand there all day and go up one dollar at a time, and keep smiling.

As for video, they can't stop you videoing from the street.
Inside private property they can ask you to leave.
But you can always just ask back "what have you got to hide?"
 
It was an entertaining auction, the lady in black kept sending questioning stares in your direction every time you raised your bid.

I consciously didn't look at her once.....except in that general direction when I held the camera up to take the crowd shot.

I wonder what she was questioning.

I thought of walking right over to her to see if we could come to an arrangement mid auction.......

I would have been keen to see how the auctioneer handled that.

BTW Andrew, she is a professional actress/model. I googled her later.
 
We were at auction this am. hadn't prepared to buy, but developed a serious interest in this place at auction.

we thought it'd start around 800 and go up to 9-1.2.
if it stayed under 1, we were interested.

anyway, the first bid was an upper cut 1
three parties bid it up to 1.12, before stalling.
auctioneer was away with owner for over 20 minutes.

in that time we decided on a 1.2 cap

auctioneer came back and started, and while we were still finalizing things with his offsider, he brings the hammer down.

just goes to show, the auctioneer is da man.

disappointed we missed it.....especially after inspecting another 4 afterwards.

but....deal of the decade every week.
 
Where are you looking ww?

tell you overtly when we've finished buying in this area Andrew.
you or one of the 421 readers of this thread might be bidding against us one day.

I'll volunteer some of our rationale though:

- this year, we think Bris might get a little of the hysteria that swept Melbourne last year....considering we often lag the southern states. but we also appreciate the Chinese drove a lot of Melbourne demand, which won't happen where we are looking.

- our research shows the top 20% of post codes have the best growth currently.

- we are looking for well located larger Res A, ideally located for child rearing via professional couples (preschools, parks, flat, large blocks, respectable neighbourhoods, <1.5m, <6km from cbd). their supply demand ratio will dwindle most as the city grows over the next 5 years. we are also seeing a lot of highly paid skilled foreign and interstate migrants in their 30 and 40s continuing to move into Brisbane.

- this isn't a strategy for everyone. we need the neg gearing at this point, and consider equities too risky to be holding medium to long term with leverage. though we're playing short term.
 
Can anyone see anything wrong with doing the following at auction:

- when the auctioneer asks if anyone has questions before starting the bidding, put your hand up and ask
"when did the house last get a termite and pest treatment?"
or
"why didn't the advertising say anything about the termite infestation in the south wall and roof cavity?"

- if bidding has come down to you and one other party, just stop bidding for a while and walk over to the other bidder and start talking to them. ask them if they want to cut a deal or toss a coin for it. or tell em you'll give them $5,000 cash on the spot to stop bidding.

- identify who and where the owners are, and during bidding go and ask them what the reserve is.

- register to bid then go change into a clown suit....and do funny bids.

- if you are one of the last two bidders, keep asking the auctioneer during bidding
"is it on the market yet."
"I'm only bidding 500s" if he refuses to take it, tell him you are going to talk to the vendor.
"my mobile phone is playing up and I need to confirm higher bids with my partner"
to the gathered crowd say "hands up if you think it is worth more" of course few are going to put their hand up at an auction.
to gathered crowd say "should I keep bidding"

Of course, all this stuff is aimed at exposing auctions for what they really are.....an attempt to usurp more money out of buyers than the buyers would otherwise pay. It is a one sided affair in many respects, and I have no moral qualms about hijacking or sinking the theatrics.
 
lmao
WW this stuff reminds of Peter Spann's auctions tactics which i think are rather silly, and using his terminology, will make you the "super wanka" of the auction.
If you (or another Spann style bidder) were to encounter me at an auction you'd be the laughing stock of the day, and there would be next to zero chance of you buying anything cheap.
That's if the auctioneer (or anyone else) would take you seriously enough to take your bids.
Unfortunately it's rare I come across them.

Only a noob asks "is it on the market yet?", I once asked a person "Have you never been to an auction before?", then the auctioneer pretty much made'm look like a dummazz. End result nobody wanted to deal with him, and all things being equal he was last in line.

IME the owners are hardly ever "in the crowd", REAs are rarely that stupid.

Even if your the last bid (and reserve has'nt been reached), all I'd need to do is approach the RE agent and say "You take that guy seriously? Let me know what price he offers, I may be able to better it"....and the clown remains just that.

But please, anybody out there who does not agree with me please turn up to all the auctions i do as i generally get bored at them. It would make my day.
 
But please, anybody out there who does not agree with me please turn up to all the auctions i do as i generally get bored at them. It would make my day.

PB, you seem to know a lot about auctions.

Can you tell me
- if the winning bidder has entered a legally binding contract?
- can the winning bidder be forced to sign a contract?
- does the vendor have to sell to the highest bidder?
- if a vendor bid is put in for 300,000, can I bid 300,000 too?
 
PB, you seem to know a lot about auctions.

Can you tell me
- if the winning bidder has entered a legally binding contract?
- can the winning bidder be forced to sign a contract?
- does the vendor have to sell to the highest bidder?
- if a vendor bid is put in for 300,000, can I bid 300,000 too?

Winston,in QLD,from my understanding the highest bidder has the exclusive right to negotiate until the end of the Auction,or any other time specified by the auctioneer,it's legally binding once the property is on the market and you are the final bidder,but it does not always work out that way from my experience,imho..willair..
 
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