You only bid aggressively at auction if you want to scare off other buyers, but before I talk about when it’s a good idea to bid aggressively, I want to remind you that you need to know what the property is worth, and what your maximum bid is before you go to auction. So when to bid aggressively at auction?
5 Bidding Aggressively Scenarios:
- You have more money than everybody else
- You know what that property is worth
You also know that the agent has been severely under quoting it, so you could come in really aggressive and scare off quite a lot of other buyers who have wishful thinking and are hoping that the property is going to sell at a much lower price.
- When you’re bidding against inexperienced bidders.
By bidding aggressively you can easily scare them off.
- When the market is hot and you want to scare off as many other bidders as possible in one hit.
- In a cooler market but where there are a lot of registered bidders.
Sometimes, a slam dunk bid can work wonders – you just have to be quite brave but also very, very calculating in how you do it. Understanding what a property is worth is key to the success of this tactic. Fundamentally, bidding aggressively is all about control, you’re wanting to control the auction, and there are some other ways you can do so without being aggressive. One is by being politely disruptive, it’s one of my favourite ways. A different way is to use odd numbers when bidding, for instance.
People aren’t expecting that, they’re expecting the bidding to start in bigger numbers and slowly go down until it gets to the pointy end, so I like to mess it up a little bit. Another way is bidding before you’re asked to by the auctioneer, it’s a bit different. And, another one that I’ve really loved doing is bidding a higher number than you’ve been asked for. After all, if you know it’s below the reserve it doesn’t really matter what the amount of the bidding is at this point, so if the auctioneer asks you for $25,000 bid for arguments sake, why not give them $30,000? It really unsettles other buyers.
Another slightly crazy tactic is to bid against yourself. Sometimes, I’ll use this and I actually increase my own bid and people think I’m insane. You know what – if that stops them bidding, then that’s okay.
Warning: bidding strong can have its drawbacks. One drawback is that the owner actually starts thinking the property should sell for a higher price. Another drawback is when you actually lock horns with another competitive bidder and you forget about the value of the property, as you’re actually just competing to win.
Lastly, don’t bid aggressively against another aggressive bidder, it’s going to end in tears. What you need to do is disarm them, but that’s a topic for another video!
Published: 17 May 2018
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