Your Strategy At Bidding (Auctions)

Going to attend a few auctions in the next few weeks so thought might ask for best strategies.

Been to few auctions in the past so have a fair idea of what happens- Just curious as to what strategies are used by most:
a) Snipe bidding: staying quiet up untill the third hammer
b) opening with a big bid and making big bids quickly until your limit (which should be a good one for this to work lol).
c) slowing the auction down (small bid increments, being on phone etc)
d) bid as you go...

Pros and cons of each??

Any other advice (except for sticking to a limit which isnt most help in current climate!! LOL).
 
Stand off to one side of the auctioneer and stare at (and then down,) the other bidders. This still won't work though, if they have more money than you to spend.:(
 
Depends,

I usually create a scene and make people loose their attention.

Quiet often i will walk around and infront of the auctioneer and scope the room (see other peoples reaction), I will throw out small bids, and big bids. Depends where the other party is at if they are copying me i will cut them by going a lager increase so they will stop and think.

I also ask questions in the special conditions to the auctioneer as by law they mmust answer them. This is done when there is a roll because it stops the process and gets people thinking whats wrong with the property....

Many different ways.
 
Depends,

I usually create a scene and make people loose their attention.

Quiet often i will walk around and infront of the auctioneer and scope the room (see other peoples reaction), I will throw out small bids, and big bids. Depends where the other party is at if they are copying me i will cut them by going a lager increase so they will stop and think.

I also ask questions in the special conditions to the auctioneer as by law they mmust answer them. This is done when there is a roll because it stops the process and gets people thinking whats wrong with the property....

Many different ways.


what sort of questions would you be asking? can you give an example? thanks in advance.
 
what sort of questions would you be asking? can you give an example? thanks in advance.

I will find something in the special conditions and ask the auctioneer to explain it because you dont understand.

It slows the auction down 95% of the time.

Also forgot to ask throw a figure out aswell like $200, 205, 210, 215, 215470, and that will throw most auctioneers.
 
Also forgot to ask throw a figure out aswell like $200, 205, 210, 215, 215470, and that will throw most auctioneers.

Wouldn't most people, and particularly auctioneer, see this as what it is - a ploy? OK, it might stuff up others, but don't you also risk confusing yourself!? :eek:
 
Hi all,

I find raising the hand above my head a good strategy to bid at auctions, and then keep it there.

There will be whispers about what this idiot is doing. The autioneer may question what you're doing, but other potential purchasers will tend to stop at their limits as they know your serious about buying this place, and an idiot to boot.
There will not be the thought in others minds about going just a little bit higher to get the place, as they can see your hand is still in the air.
Of course it helps to know that you are bidding against people and not doors, windows and shadows when employing this strategy.

bye
 
Bidding strategies is mostly crap people spout to try and pretend that they are savvy. What matters is being calm.

What happens at an auction is you stop bidding when someone else is prepared to offer more than you. Whether you get to that limit slow or fast is irrelevant. If your prepared to go just over your limit because that will beat the other guy, then its not really your limit is it?

Nathan's tactic of asking specifics about the special conditions is just a general put off other buyers tactic. Doesn't really work when you turn around and bid.

People constantly asking if its on the market is just "peacocking". It doesn't matter, if its under reserve you negotiate, if its over its getting sold. Not bidding until it is on the market is just public arrogance of "my time is so valuable", yet not making a bid to push the auction along.
 
dont worry about being the first to bid.. just bid low if noone else has put a hand up. My pet hates is at auctions when there are 10 registered bidders and no one wants to start. So you listen to the Auctioneer crap on for another 5-10 minutes trying to get someone to start.. would just be alot easier if someone put their hand up.. .even if it is 100k under what you want to pay.. just start!

also agree with the "is it on the market" question. It doesn't matter.. even if it hasn't met the reseve if your the highest bidder you get first shot at negs. I have noticed this question comes up a lot more since the flood of property show - particularly Uk ones- it was rarely asked 7 years ago when i started in real estate, now everyone asks it constantly.
 
I agree with just wanting someone to start proceedings. When I've been to local auctions just out of curiosity I get so frustrated that it takes so long to get rolling. No one is bidding at $400K when everyone knows it is going for mid-500s. Nothing gained by starting round looking at the grass for 5-10 minutes other than a bit of sunburn.
 
dont worry about being the first to bid.. just bid low if noone else has put a hand up. My pet hates is at auctions when there are 10 registered bidders and no one wants to start.

I agree with just wanting someone to start proceedings.

I think it's due to a lack of confidence. Not in their own finances, but just a lack of self-confidence in front of a crowd, pure and simple.

Exactly the same phenomenon you get at a school dance where no-one wants to be the first on the dance-floor.

Personally I don't mind making a fool of myself, and usually am the first on the dance floor :) However I am yet to bid at a property auction. Sounds fun, but the opportunity hasn't come up for me yet, living in Brisbane.

-Ian
 
I don't like bidding early only because I don't like attention. The auctioneer keeps looking at you and asking are you going to go higher. I'd rather wait and bid when bids slow or looks like it's ending.

The important thing I think is knowing your limit and going in strong until you reach it then stop. It's frustrating when people um and ah each time it gets to them. This also makes the other bidder think "oh that tops them out" so they bid "one more time". This can go back and forwards a few times. If you came in strong the other person (may) get the illusion that you are nowhere near your limit and give up.
Of course this is all guesswork on my part as I don't know what others are thinking but it makes sense to me.

Another important thing is knowing your auctioneer. Especially if you are one to wait until the third (and final) call. Some auctioneers wait and wait between saying first call, second call etc. I went to one auction where the auctioneer stated he wasn't going to muck around and don't wait until the third call or you'll miss out. Some people didn't believe him obviously because when he said "going, going, gone" (in 5 seconds) then put the hammer down some were shocked.
 
Hi all
heres my ideas
1 find out what's wrong with the property first
holes in the walls bad neighbours no buses even bad council
2 why are they selling
3 why would some one buy this dump
4 people buy on heart not on numbers so you need to work out who are the heart people and who are the numbers
5 work out who's who in the zoo so walk around ask people do you like this place
Use your info
do you like this place as you have 2 kids as there is no schools near or are you a builder as this crack you could drive. Bus thru
plant the seeds
why would some one buy this dump
plant the seed with the hearters
then for the numbers
ask the question of the agent and the auctioneer
have they for a price on the cracks
if no ask the guy you already asked what he think
just raw numbers
the number guys worry
then bid against the guys they came to buy and they
will not worry about your knock out numbers as they use them thereself
people think this is not fair play
sorry this is war
an auction is a battle with one winner unless passed in and if you go into battle without the right knowledge or equipment you will lose
here a bit of info for you
a sale is done one the following
10 to 15% the item
20% on the information about the item
25% on the person selling the item ( you think they are hot or you like them)
10% on the price
5% on some one else has one or they have told you about it
5% the person knows anything about the item
10% floats
so look above what's the major thing most people buy on
 
Hi all
to buy a property that you want at the lowest price would take 5 to six pages
and it always asked
someone has to do the work to drive that price down
and some one that knows what they are doing
there are ways to alter an auction even change it completly but are they for a board
simply no
you want to buy you have to drive the auction and drive it your way
and to do that you need a well work out plan just like a battle
 
Tactics I have used in the past are,

-Go to many auctions before you bid at one so that you become more familiar with the proceedings.
-Wait until the hammer is about to fall before you start your bidding. This is very distressing for the person who almost won and throws them of their game, believe me I've been in that position a few times.
-Always put a bid in if your interested and the price is right so even if they don't accept the bid you will have negotiating rights, don't let it get handed in.
-Stare down other bidders.
-Bid with confidence and without hesitation, this gives the competition the feeling that you can go higher. Its also funny when you get to your max bid and suddenly stop bidding and the auctioneer is trying to get you to bid again.
-Bid in large increments, same as above, it gives the feeling that you can go higher.
-Dress in expensive clothes, as above.
-Go to all the opens and find out who is interested, find out their addresses and on the morning of the auction puncture all their car tyres so they miss the auction.:D

Paul.
 
end of the day their are no sure fire tactics, staring down people can just get you into trouble and is plain rude

Whoever has the most money on the day wins regardless.

When I bought my PPOR it was down to me and two other people bidding increments of 500 dollars whilst I was rounding up to the nearest 10 000, only becuase I knew what the property was worth and how much I wanted to pay, they took me up 70k before they gave in and I won the auction

So my big bid knockout method didnt really work, but I still got the place in the price bracket that I was willing to pay on the day.

Good Luck, auctions are fun... :)
 
Woody Allen once said


'Eighty percent of success is just showing up!'


Just show up, bid, and if you are the highest bidder you get the coconut. If you're not, you don't.

Last Auction I went to I paid $1,000 more than the underbidder.

Previously, I bought a property for $100 more than the underbidder.


Auctions are quite different to Private Sales.

With Private Sales, you start at the advertised price and try to find some common ground.

With Auctions, the sale is on the fall of the hammer, and you are not bidding against the vendor, you are bidding against real live people who are also prepared to buy the property.

Sorry, Nathan, the Police could be called and you could be removed from the Auction if you tried to deliberately disrupt proceedings in Victoria.

Apart from the legal aspects, it is highly disrespectful of other people to try and distrupt proceedings to thwart the vendor's opportunity to sell the property for the best price.

I just bought a Deceased Estate. I happen to think Life, Death and the Whole Damn Thing is worthy of respect, and if someone is selling a house that an old man has lived in for 65 years I think that deserves respect. I like to think that I shall now live at that address for the next 65 years - even though that would make me a very old woman, indeed!

Interestingly, the Valuer valued the 'improvements' at $16,000 .... salvage value if you're lucky!

There was not one home buyer bid at the auction, except us. I just kept bidding till I bought it.

Not a very sophisticated tactic but it works for me!

Cheers
Kristine
 
The whole purpose of making a scene is to direct the attention off peoples game. Your there to secure the property at the lowest price and vendor at the highest price. I dont see how a person can have police called upon for having a little humour at auction.

I have purchased hundreds at auction and have a different strategy at each auction attended.

As for asking the questions, its asked to slow the bidding down and does work if you have a weak auctioneer, if you have a strong auctioneer and you pull tricks on them they will shoot you down and you will have the whole reverse happen.

Goodluck all.
 
I use a similar strategy to Nathan....but some tips are:

1. I sometimes ask the auctioneer to explain a special clause....even if people roll their eyes.

2. Be unpredictable.....I start the auction....then pulll out ....then come in and make a few bids...then pull out...and then come back in. Keeps everyone guessing.

3. I try to slow the auction down...if they are bidding in 10k increments...I offer 5k....just don't drop it too low.

4. Bid confidently...particularly at the end. I come back within 2-3 seconds of a bid.

5. Love the $500 dollar specials....offer $500 dollars more for every bid. Sometimes gets knocked back...but works well as the auctions get to the end. Frustrates other bidders and the auctioneer ...particularly if they are not professional ones as they have a handful calling out the number.

6. Hang around the auctioneer and make it look like you are long lost buddy of the Real Estate agent.

7. Keep your eyes and ears open....it is amazing the cues people give out and what their body language reveals. I use a friend to spot the body language of people..particularly as they hit their limits.
 
I use a similar strategy to Nathan....but some tips are:

1. I sometimes ask the auctioneer to explain a special clause....even if people roll their eyes.

2. Be unpredictable.....I start the auction....then pulll out ....then come in and make a few bids...then pull out...and then come back in. Keeps everyone guessing.

3. I try to slow the auction down...if they are bidding in 10k increments...I offer 5k....just don't drop it too low.

4. Bid confidently...particularly at the end. I come back within 2-3 seconds of a bid.

5. Love the $500 dollar specials....offer $500 dollars more for every bid. Sometimes gets knocked back...but works well as the auctions get to the end. Frustrates other bidders and the auctioneer ...particularly if they are not professional ones as they have a handful calling out the number.

6. Hang around the auctioneer and make it look like you are long lost buddy of the Real Estate agent.

7. Keep your eyes and ears open....it is amazing the cues people give out and what their body language reveals. I use a friend to spot the body language of people..particularly as they hit their limits.

Said well.

Was bidding at an auction where the auctioneer was so "poor" of an auctioneer he told $20 and $70 bids and then back to $1k and $5k bids then to $150 bids. There were over 100 bids from me at that auction alone and the guy was mirroring many of my silly ones, which threw auctioneer off. (someone on SS was present on the day with me)

Its all just a game and whatever works best for you. Sash has detailed it a lot clearer then myself.
 
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