We are bidding for our first IP this weekend in Melbourne. Have never bought at auction before as we are from the UK. Any tips - we really need your help! Should we get in early with strong bids and show we are there to buy? Or what is the best strategy?? All ideas most appreciated. Thanks everyone.
Help! Bidding tips for auction this weekend
- Thread starter smartbuy
- Start date
Everyone has different strategies. As for me I like to hold back in my bidding until the property is on the market and it is just about to sell. I wouldn't like to bid early because the auctioneer will put you on the spot and try to persuade you to bid. The last property I purchased, I only made one bid, and I won it. Everyone was shocked.
how were they shocked??????
I think because they thought it was all over and all of a sudden some new bidder comes along and wins with just one bid? There were 2 bidders battling it out for awhile. The auctioneer even said that this was the first time he saw someone win with just one bid.
If you have set your price limit, probably doesn't matter how you bid, ie early bids, or laid back and wait until the end. I think your bidding style is actually reflective of your personality. The market will dictate price, so it doesn't really matter how you bid. It is difficult, but keep your cool and if it isn't meant to be, there will be other opportunities.
As for me, my strategy is (as long as I know my limit is around the likely selling price), I will let others bid, if there are multiple bidders, and try to read the progression of the bids ie are prospective purchasers reducing the advances ie from $25k's to $10k's to $5k's to $2k's to $1k's. Not always, but it does tend to suggest that you are reaching the limit. At that stage, somtimes psychologically, if you put a bid say $10k over the current bid, may have the effect of knocking people out. Ultimately you never really know what the other bidders limit is, do you?
Last Saturday I purchased at auction, of which there were 6 bidders (there 2 buyers advocates in that lot. One who was definitely trying to interuppt the flow of the bidding process deliberately IMO but that's another issue). My only bid was the last one. Sometimes you can be lucky
