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From: Roderick Aguilar
Hello everyone,
I normally do not buy at auctions anymore, since I've discovered how to get houses at wholesale but a friend of mine asked me to go along with him at an auction to give him a hand.
We won! with only $2500 to spare before we hit our limit!
Below are the tactics we used which worked yesterday (most of these are from the Peter Spann course I had done last year):
1. Arrive early. We were one of the first ones there. Auction was on-site.
2. Start a conversation and befriend the real estate agent. Make sure you do this at the front porch of the house so that everyone can see.
3. Fortunately, for us the auctioneer was running late and everyone got to see us talking with the real estate agents for a good 10 minutes. I came well-dressed in business attire so it gave the perception that I must have oodles of money.
4. When the auctioneer finally arrived we then proceeded to position ourselves at the front just a little to his left as he faced the crowd. This way we could make eye contract with everyone who was bidding against us. What he sees we can see.
5. Fortunately for us, the real estate agent which we had struck up a conversation with, had decided to come to our corner and we asked if he could bid for us. We did not tell him initially what our limit was. We figured this would give everyone the perception that we are a friend of his and that he was determined to get the property for us. ( I only met this guy about twenty minutes ago!).
6. Since no one wanted to go first we started the bid at a low mark.
7. People attempted to blow us away with a mixture of 10K, 1K and 5K bids.
8. The key is to slow things down. We only bid in $500 increments.
9. Fortunately, the real estate agent was very seasoned and he only put in our $500 bid at the end of every second call just before the third and final call.
10. We merely dragged out the process to the point where everyone else became frustrated and eventually gave up.
11. As people bid against us, we would scan the crowd and make eye contact, wait until the second call and then bid our $500.
12. Everyone quickly realised that we wanted the place and that we could keep going up in $500 increments for as long as it takes. Little did they know that we had a limit and were prepared to walk away if the limit was hit.
13. As the reserved priced was hit and the property was on the market (and we began to approach our limit) the real estate agent asked us what our limit was. He only had less than 10K to play with. So he slowed the auction down even further. The timing of your bid in an auction is everything! He
only put our bid in at the last possible second. And it paid off.
It does not matter how often I go to auctions, winning one always gives you instant gratification! At the end of the auction, all the real estate agents (there were four of them) came round to
congratulate us on a very good buy. We bought below market value and just above the reserve price. It never ceases to amaze me how you can influence people's perceptions by just trying on a few tricks.
Cheers,
-Rod.
Hello everyone,
I normally do not buy at auctions anymore, since I've discovered how to get houses at wholesale but a friend of mine asked me to go along with him at an auction to give him a hand.
We won! with only $2500 to spare before we hit our limit!
Below are the tactics we used which worked yesterday (most of these are from the Peter Spann course I had done last year):
1. Arrive early. We were one of the first ones there. Auction was on-site.
2. Start a conversation and befriend the real estate agent. Make sure you do this at the front porch of the house so that everyone can see.
3. Fortunately, for us the auctioneer was running late and everyone got to see us talking with the real estate agents for a good 10 minutes. I came well-dressed in business attire so it gave the perception that I must have oodles of money.
4. When the auctioneer finally arrived we then proceeded to position ourselves at the front just a little to his left as he faced the crowd. This way we could make eye contract with everyone who was bidding against us. What he sees we can see.
5. Fortunately for us, the real estate agent which we had struck up a conversation with, had decided to come to our corner and we asked if he could bid for us. We did not tell him initially what our limit was. We figured this would give everyone the perception that we are a friend of his and that he was determined to get the property for us. ( I only met this guy about twenty minutes ago!).
6. Since no one wanted to go first we started the bid at a low mark.
7. People attempted to blow us away with a mixture of 10K, 1K and 5K bids.
8. The key is to slow things down. We only bid in $500 increments.
9. Fortunately, the real estate agent was very seasoned and he only put in our $500 bid at the end of every second call just before the third and final call.
10. We merely dragged out the process to the point where everyone else became frustrated and eventually gave up.
11. As people bid against us, we would scan the crowd and make eye contact, wait until the second call and then bid our $500.
12. Everyone quickly realised that we wanted the place and that we could keep going up in $500 increments for as long as it takes. Little did they know that we had a limit and were prepared to walk away if the limit was hit.
13. As the reserved priced was hit and the property was on the market (and we began to approach our limit) the real estate agent asked us what our limit was. He only had less than 10K to play with. So he slowed the auction down even further. The timing of your bid in an auction is everything! He
only put our bid in at the last possible second. And it paid off.
It does not matter how often I go to auctions, winning one always gives you instant gratification! At the end of the auction, all the real estate agents (there were four of them) came round to
congratulate us on a very good buy. We bought below market value and just above the reserve price. It never ceases to amaze me how you can influence people's perceptions by just trying on a few tricks.
Cheers,
-Rod.
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