Virtual auctions and online auctioning platforms have emerged more prominently over the past decade and made auctions far more accessible to both buyers and sellers from all over the world. With their many benefits, it’s not hard to see why online auctions have become so popular. But remember—winning at an online auction is going to require a different approach than you’d use at an in-person sale.
If you’ve got your eye on something in an upcoming virtual auction, here are a few strategies you can try to take home your prize!
1) Bid Nibbling
Bid nibbling or nibble bidding is a tactic where you put in a bid considerably higher than the initial price, but one that’s still under market value. If you know the amount your item is likely going to reach anyway, starting out higher will weed out buyers who aren’t serious and prevent a prolonged bidding war that ends up driving that final price even higher. Do your research on the market value of the item beforehand, so you can choose a number high enough to scare away bargain buyers but low enough to leave you room to go up.
Online bidding is all about timing. A lot of virtual auctions have a hard-set end time. When that time arrives, the item is awarded to whoever got in the highest bid before closing. If you wait until the last possible second and bid a few cents over the last highest offer, you’ll box out the competition and “snipe” the item right out of their hands. If you’re attending a live online auction, you can still use this strategy to let the bidding cool off and increase your chances of getting a better price.
Squatting is a psychological bidding strategy that lets buyers know that your interest in an item is serious and you won’t be going down without a fight. If the competition thinks you won’t give up, they’re less likely to put in the effort to outbid you after a certain point. Start by bidding early, then countering every bid that follows to mark your territory. A good tip to keep in mind for this approach is to counterbid using odd numbers, like $231.50 instead of $230, so your patterns are less predictable and the competition is more thrown.
As leaders in the land and real estate auction industry, we’re always providing buyers and sellers with innovative ways to be a part of our auctions at Smith & Co Auction & Realty. In addition to our live virtual and Internet auctions, we also have an app that gives buyers the power to bid in auctions from anywhere at their fingertips.
Check out our upcoming auctions page so you don’t miss out on that special property you’ve been dreaming of!