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Auction Tips

Discussion in 'The Buying & Selling Process' started by King, 19th Jun, 2015.

  1. King

    King Active Member

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    Go aggressive? Late bidder? Do you have any auction tips? Please share :)
     
  2. Big Will

    Big Will Well-Known Member

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    For me, it is know my limit then wait until the property is starting to die down and then go balls.

    Keep bidding straight away to intimidate the other person until you have reached your limit, as soon as you need to start talking about it that is the sign I pull out. Be firm on your limit as there is always another property around the corner.
     
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  3. Heinz57

    Heinz57 Well-Known Member

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    I like to call out the total figure "Fiiive hund...er...ed and twenty thousand dollars" instead of that nodding winking thing some people do. And tell the'helpful' real estate agents to go away and help someone else.
     
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  4. Jacque

    Jacque Buyers Agent and Bookworm, Sydney Business Member

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    Yes to all of the above. Confidence is key, as well as not entering bidding until you're sure it's on the market/they're selling. Stand to the side of the auctioneer so you can observe your competition, bid quickly and loudly on top of last bids, don't be afraid to slow down bid amounts if you feel it's going too fast and politely ask selling agents to stay away beforehand. Best of luck!
     
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  5. Leo2413

    Leo2413 Well-Known Member Premium Member

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    1. Go in understanding its completely a psychological game.
    2. Develop your plan and stick to it 100%. (know what its worth and don't bid a cent over)
    3. Never make a bid unless you know its on the market (this is getting a little tricky now as many auctioneers have realised that smart buyers have picked up on certain terminology they use making it too easy for buyers to know its on the market. So they have slightly tweaked what they say at many auctions ive been to making it more subtle.)
    4. When you decide to bid, be confident, go hard and make it appear as though you have endless pockets. If the bid goes 550k, before the auctioneer can finish saying 550, you cut him off (politely of course) with your next bid.
    5. If your bid is last and no one has higher and the agent says to you if you increase by X amount it will persuade the vendor. Don't. You have the upper hand here and the vendor is very vulnerable in this position. You can also negotiate after the auction which is better because if the vendor wants to go to another auction it cost them more money so its a disincentive, not to mention the emotional rollercoaster for them again.
    6. If it goes above your limit, walk away. That's it.
    7. It really is war, so prepare for the battle.
     
    Last edited: 19th Jun, 2015
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  6. King

    King Active Member

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    these are some very helpful tips guys! so technically one should not bid if its not yet on the market but how do we know if its on the market? also what do you mean by
    im assuming lower the increment?
    and
    telling the agent not to talk to you?
     
  7. Leo2413

    Leo2413 Well-Known Member Premium Member

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    Hi King,

    Yes you can attempt to slow down the bidding but IMO each case is little different. Sometimes attempting to slow it down can make others think your weak and give them a psychological boost to keep going. Other times attempting to slow down can work well. Case by case I think.


    Yes you can ask the agents to stay away. For me, the main reason is that the agents are NOT on your side no matter what they make you believe. They will come to you and whisper things in your ears etc. Its all poison and needs to be ignored mostly. I have seen many times agents put bidders (young females a lot) in tears from the pressure they 'gently' increase on them.
     
    Last edited: 19th Jun, 2015
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  8. S.T

    S.T Well-Known Member

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    Know the auctioneer, go to one of their auctions prior and check out their style. Do they do fast knock downs, how they interact with the crowd - you can gain so much from this insight. They may remember you and helps build a relationship with them

    Last knock down (3rd) bidding can be very intimidating to other buyers. Can knock the wind out of their sails. I like to bid right before that hammer falls.

    Confirm that the property is on the market, make sure you clearly ask the auctioneer this. helps show you're a serious buyer and not there to play games.

    Last of all auctions are so much fun, they're a blast. So enjoy them for what they are, banter and joking can help you relax.
     
  9. King

    King Active Member

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    Thanks Leo!

    S.T - how do you find out who the auctioneer is? usually they will hire a 3rd party auctioneer. good point the last knock down bidding. ive been to several auctions and never hear anyone asking the auctioneer if the property is on the market. is there a way to go about doing this?
     
  10. S.T

    S.T Well-Known Member

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    Check with the agents handling the listing. Some of the smaller agencies only have the one auctioneer - so pretty easy to know who it will be. Gives you a discussion point with the agent also.

    Just ask the auctioneer during the auction when it gets to a certain point. Can be used prior to you even entering a bid. Handy as a technique for controlling some tempo of the auction, to slow things down if required.
     
  11. Big Will

    Big Will Well-Known Member

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    The auctioneer will likely hold off the property being on the market until the bidding dies down and a way to ramp up the bidding again. That being said in the slower auctions you will hear buyers asking if it is on the market. To me if you are asking if it is on the market then you are disclosing you are a potential bidder and I would rather go ham when I am ready.

    Even if the property is not on the market, I still like to be the final bid to know what the reserve is and negotiate.
     
  12. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    This is a great tip (they all are actually). I've noticed that the person who ultimately purchases the property is almost always a late bidder. If you bid early I think you're kind of showing your hand before you're really ready to play the game.

    The other tip I'll add is don't just nod an increment or say, "Another $5k". Speak the full amount. It's more confident and reminds the other bidders that they're going to have to pay for this property with real money.
     
  13. Steven Ryan

    Steven Ryan Mortgage Broker Business Plus Member

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    I love auctions. Always an event.

    Strategy varies a bunch. Go hard and strong early, wait 'til last minute, turn up in dirty ripped jeans and thongs with messy hair and a 1 week beard...whatever the occasion requires.

    My favourite was sitting at the back of an auction hall and opening the bidding on an apartment with an offer of something like $427,136.

    The entire room turned around, many laughed, then the auctioneer said something to the effect of: "Uh...well sir, I've never taken a bid like that before but ok. Could you repeat the bid amount?".

    It was great to disrupt the flow and throw everyone off. Kinda like releasing a cat among pigeons. The first counter-bid took a moment to come. That was the plan. I thought maybe a few bidders would have planned their increments a bit and my bid would be a spanner in the works.

    At another auction, I stood facing the crowd while bidding. Weirded a few folks out I think.

    Side note: I was bidding at auction once and a bloke drove past really slowly and yelled "ONE MILLION FIVE HUNDRED THOUSAND". Everyone had a chuckle.
     
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  14. Leo2413

    Leo2413 Well-Known Member Premium Member

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    Absolutely great tip! nice one.
     
  15. Leo2413

    Leo2413 Well-Known Member Premium Member

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    Love your antics Steven! :D
     
  16. Big Will

    Big Will Well-Known Member

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    I have also been to an auction 360k+ and there was no joke about 100 people attending the auction. The auctioneer asked for an opening bid and one guy opened with 420k, that stunned the crowd but smart move as it made him appear to have a lot of money + stop the auction getting carried away with 10 people bidding.

    Ended up selling for $460k, good old under quoting and I laughed at all the people who came thinking they might get the property for low 400s or below.
     
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  17. S.T

    S.T Well-Known Member

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    Great play by that guy, probably eliminated 80 of those 100 people from thinking of bidding - good to show how serious he was too.
     
  18. King

    King Active Member

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    great tips guys! really helps in this current market... thought its situational but definitely learn alot...
     
  19. Esh

    Esh Well-Known Member

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    I've only bought one property before but I went to many auctions when I was looking to buy 3years ago in 2770. My strategy was to wait and then when it was slowing down then BAM!!! Surprise everyone with my bid. That never worked. Now that I work in Real estate and this strategy was also my partner’s (which I never liked but now I agree)

    I will use $500k as an example. Say $500k is your limit. When Auctioneer asks for an opening bid, before they even finish straight away put a quick opening bid in. Say, $400-$410k. One this shows you are confident, two you have room to play. Make sure you do your research and don’t bid too low because you will then become the laughing stock. As soon as anyone puts a bid on top bid right away above them (again before they can even end) Keep doing this till you get to where your limit it. What this confidence does it eliminates competition. 99.9999% of buyers hate Auctions and they are so nervous and scared that you can just feel it in the atmosphere. Bidding like this intimates and knocks your competition out.

    There is not much you can control in the auction process, the way you bid is the best thing you can do for yourself.
     
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  20. Esh

    Esh Well-Known Member

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    lol that's the best