Auction strategies

I found this on auction strategies The most common auction strategies (and whether they actually work)

Seems to me, it is written to get people to bid as high and as much as possible, by agents

When I have gone to auctions, my strategy has been, bid up to a reasonable amount, then after that, walk away.

What have you done that works ?

Any of this black magic worked for you ?

 

I find these articles absolutely ridiculous

My opinion on auctions is whoever has the most money on the day wins end of story

 

Walk away is the only strategy.

Honestly - how are you going to stop a person who wants the property more than you and has more money?

 

Or someone who doesn't want it as badly as you but has more money...Ouch...

 

The following work well for me (pretty much the ones they say don't work).

2. Never make the first bid
4. Work off your own instincts on auction day
6. Hold back throughout the bidding
8. As soon as someone bids against you, bid again immediately <-- Add on until limit is reached. Like a Dyson handheld vacuum. Keep going at full power then die off... no point dragging it on slowly.



@dabbler - Definitely agree with what you have said. Sounds its written deliberately to make people bid more.

 

Pretty much agree except it's not who has the most money, but rather who is willing to spend the most money.

Having said that there is defiantely a place for strategy in making offees prior to auction and also after auction in the event that auction has failed and reserve not hit. I have benefitted in both these scenarios from deploying various strategies.

 

Seems they are a guide on how to make agent and auctioneers life easy There are a few of them out there.

My idea was always simple, just bid, no one can psyche me out or change my budget

I have ended up with property when I was first bidder too.

 

Care to elaborate a bit on these?
I've found that offers prior to auction even unconditional ones generally only serve to give the vendors an idea of the price it might go for. Many don't seem to have any intention of accepting these offers. I've heard of stories where pre-auction offers go for more than the auction amount.

 

I agree with this and who has less common sense than you.

 

LMAO that article is some of the biggest BS I've ever read .

 

What have you done in these situations ?

 

Pre auction I often put in low ball unconditional cash offers.

Post I really try to take advantage of seller (and agent) desperation. "See, I told you it's only worth x".

 

Yes. I tend to agree. And indeed I once I my time made an offer per auction, and then by auction day a week later I pulled out as I found another place. Original place sold for slightly less than my offer. Greedy seller lost out.

 

Yeah, I just did the same to one I hope to snag soon, first it was going to auction only, then a bit over a week out they say open to offers, seeing they won't negotiate or agent has said do not negotiate, I hit them real low.

It may backfire though as they may get other offer/s.

Such a mexican standoff, the open to offers, but then not willing to negotiate seems a bit brain dead, I think there is no point to hiding what you expect, depends on the interest.

 

This is hard to tell.

The aim of the game from the vendor side would be to try and gauge what interest there is.

But a vendor could also easily decide to take an offer, especially if they already have a or some low ones. Or they think not enough interest.

.

 

I also often tell the agent I "don't do auctions". So my pre auction offer is take it or leave it. Drives them nuts! Again this helps them basically having their cake and eating it too (ie just using pre auction offers to gauge interest).

 

This is very helpful folks, Im probably going to go bid at auction on a property in mid-Dec. Hopefully a time when fewer punters/competitors are out and about.

To me, the article is silly. IP-buyers are VERY different to PPOR-buyers. We have no emotional connection to properties; if it breaches our max bid we just walk away with not a care in the world. PPOR buyers on the other hand bid with heart and emotion meaning they can often overpay beyond what they can afford (and sometimes beyond what the property is actually worth).

Of course, the problem is that at auctions there are a mix of both buyer types which muddies it a bit!

 

I've used this tactic twice and won in in 2 auctions.
8. As soon as someone bids against you, bid again immediately

I've used this tactic quite a few times (and was downright embarrassed in balwyn lost both auctions on the same day to the same bidder who laughed at everyone when he won). When the bidder has X amount of money - it is impossible
3. Come in with a strong bid early, and knock everyone else out of the park

U need to at least bid or buy something in auction at some stage as a property investor.

 

My favourite one is to throw $1000 bids.
Agent has a right to decline
Agent also tends to ask you increase your bid.
You have a right to decline.

The agent always comes back to you.
My usual response is "Are you accepting my $1k bids yet?" No? Let me know when you do.

Have to find a nice balance between arrogant/smartass and being cheeky... otherwise you just get people offside.

 

Run at the pace that suits you, then make other competitors run at your pace.