There are more instances now than before of no-one registering at an auction. When this happens – you need a strategy.
My preferred strategy is known as The Transparent Strategy:
- Here you are very transparent and you tell everyone at the auction that you have no-one registered. Based on the circumstances, you could further say:“Ladies and gentlemen, we do have people interested but they are not in a position to bid today under the auction conditions so we will go offline and deal individually with each buyer and let you know what the number has to be to do a deal.”
I prefer this strategy as it builds trust and you are not putting any of your cards on the table regarding price.
Alternatively, you can use the Vendor Bid Strategy:
- You conduct the auction and place a vendor bid at a price level at just under what you expect the property to eventually sell at.
- Do not let your vendor influence you to put an unrealistic high vendor bid in. This will not benefit the vendor in selling the property and may also be putting you in a compromised position regarding the under-quoting legislation.
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