Fred Griffin Tallahassee Real Estate 

Hi Fred, Give me a call before proceeding, just sent you an email with some info. Interesting question as I am wondering about tax certificates sold via online auction. I have never bid on tax certificates before so am debating whether or not to try it. Diana

I would leave that to a professional auctioneer

I have never done it myself, so I am glad that you have a lot of other great answers and I can learn from them as well.

I have bid early and increased as needed, if I really want the item I wait until the end and throw in my best (hopefully winning) bid.

A great discussion here.  I have only participated in online closed bids (not a real open auction). 

When a bid is entered the 'timer' gets extended by 5 mintues meaning one can not snipe on the last 5 seconds.
Most online autcions  do not disclose if there is a reserve or the value of the reserve. With a reserve in place a shill buyer is not needed. 
NEVER highest and best, unless of course the buyer has a plane to catch.
They are certainly fun and puts a new undwerstanding of FREE MARKET on the table.

I have never experienced having to bid on an auctioned home, but I don't really feel that there is a good strategy. There are just too many variables, including who you are bidding against, and what strategy they are using. I would just wait until you get towards the end and put in a bid higher than the last bid (if you can see what the other bids are). Have a dollar amount you won't go over, and continue to increase your price, if you get outbid, until you reach the breaking point.

Just won a LIVE Auction. My advice was to remain quiet until the last minute and then fire back without hesitation until we either win or hit our upset price .

Depends on what the buyer wants to do. Some may go in with their highest and best and others play the waiting game to formulate a bid. Not a fan of the auction but some like the method.

I went to a Trustee auction and keep in mind everyone there did some homework. Before the bidding started between 3 people (me included), I stated I will not be outbid as we need this property to complete a project. They both tested me. They bid, I upped it. They bid I upped it. They got it was mine, accepted the fact and it was. As far as strategy goes, today, its like making an offer versus paying list price with one exception i.e. people are paying over listing as much as $25k plus no repairs, inspections or termites. If you want the property, do your math and confidently put forth your formula. In other words, go get it if you want it

Interesting responses. I have never participated in these and enjoyed reading what others have to say.

I have done a few but not lately. I wait til the very end to throw in the bid & make it the best that they can do with a 'lucky number' add at the end. 

So like $450,777 or whatever the buyer picks.

#3378 helped to bid up the price by placing two bids. I prefer to swoop in at the end of the auction and take my chances - IF it's still at a good price!

If an auction, you can increase as you go along or at the end. If it is a resale or builder, you need to go in with highest and best.

Fred,

I see them every so often, and most of the time the reserve price is not met.  Thank you for this interesting discussion. A

OMG Fred I bought my first house at a live auction when I was still in college.  I waited to see what was happening and then raised my card and bought the home and won it.  Totally stupid thing to do at the time but I earned another degree in the process :) 

I have had good results with in person auctions, online auctions on the other hand seem to for unreasonable prices.

Make your hightest and best offer early. If someone bids higher, you have time to discuss it with your client.

Hello Fred Griffin Tallahassee Real Estate In my opinion to bid early and increase your bid as necessary.

I have tried a few times years ago but never won the bid.  My previous brokerage has its own auction department but it is a live auction.  Sellers who are not underwater can sell their homes in the auction as well but they usually have reserves.  I guess it gives buyers the impression that they are getting homes for a good price while actually many get caught up in a bidding war and end up paying more than they should.  

I hardly see any auction now but I'm sure they are still around.

the current online software we use at my company and most of our competitors simulates a "live" auction... if bidding at "hammer time" the close extends by 5 minutes from the last bid until 5 minutes passes with no higher bids, so more difficult to "snipe".  I do not suggest bidding highest and best out of the gate, why pay more than you have to?  also the software has a "current bid" and "max bid",  which allows you to enter your highest and best amount and only increases by the amount necessary above a previous bid, does not automagically go to your stated max if somebid bids above your current bid. 

We rarely see auctions in Denver, so parked and reading.

In my real estate career, I've never made a dime from clients who wanted to bid through an auction.  The one time that I know the buyer was really serious about a property, he had the winning bid but, for some reason, he still didn't end up getting it. Supposedly it didn't reach the upset price, but that price was never shown anywhere that I could find.  That was it for me.  No longer interested in helping clients go this route. 

The strategy depends on the property's desirability to the buyer, I suppose. I've been involved in only 2 auctions, one was for storage units and the other residential. The former didn't pencil out at the reserve and it's sold a couple more times since - the property was not good. The latter was like freakin eBay with the last minute snipes . . . at a certain point we said let him have it, and it burned down a few months later. LOL 

I have not taken part in any auction of any kind since the foreclosure days of 2008 to 2012. I worked with a few clients in on-line bidding an even was successful in one or two. Details are forgotten.

If they are not absolute with only in-person bidding I have NO interest wasting my time. Each auction brings various personalities to the table and then you'll be able to discern the most favorable attack for you.

Any information that you might want re: auctions check out Ken Jones. He is the AR auction expert! 

avoid at all costs