Controlling Bidding Increments

Auctioneers often use the vendor bid to help them control bidding increments. The bigger the bidding increment, the faster the auctioneer reaches the reserve.

Their ideal scenario is to use increments of $10,000 or $20,000 to get up to that reserve. The increments only get smaller once they’ve gone past it and the bidding has slowed down.

At least, that’s what happens if you allow the auctioneer to control the increments.

When you’re trying to #Slam It, you want the opposite to happen. You want the increments to drop as low as possible as fast as possible.          

Using this strategy, you take the heat out of the auction. At lower increments, the price creeps up with each bid. And because of that, your competitors have to really think before making their next bid. Bidding doesn’t spiral out of control.

Keep an eye on your competitor. If you see them confer with their partner or start to hesitate between bids, this indicates they’re near their limit.

This is when you slow it down and show you will just keep going, offer $500 increments, and come back quickly after each of their bids, it’s a war of attrition, but never go over your buy number. This is key

Investors Choice Mortgages can help you with your loan, finance, tools and resources to suit your strategy. Feel free to book a time to talk with one of our mortgage broker experts https://investorschoice.com.au/bookacall

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