{"id":20723,"date":"2018-04-04T01:00:27","date_gmt":"2018-04-03T15:00:27","guid":{"rendered":"https:\/\/realestatetalk.com.au\/?p=20723"},"modified":"2018-04-04T01:00:27","modified_gmt":"2018-04-03T15:00:27","slug":"set-a-bidding-strategy-to-suit-the-market-steve-jovcevski","status":"publish","type":"post","link":"https:\/\/channels.realty.com.au\/realtytalk\/set-a-bidding-strategy-to-suit-the-market-steve-jovcevski\/","title":{"rendered":"Set a bidding strategy to suit the market \u2013 Steve Jovcevski"},"content":{"rendered":"<p>Do you have a bidding type? Whether it\u2019s strong and silent, loud and aggressive, or piping up at the last minute with your strongest bid &#8211; having a particular bidding style may not always play in your favour according to <strong>Steve Jovcevski<\/strong> from <a href=\"http:\/\/mozo.com.au\" target=\"_blank\" rel=\"noopener noreferrer\">Mozo<\/a>.\u00a0\u00a0 We talk to him about why different markets demand different bidding techniques.<br \/>\n<strong>Transcript:<\/strong><br \/>\n<strong>Kevin:\u00a0\u00a0<\/strong>Auctions more and more are becoming the way for people to buy and sell property all around Australia. It\u2019s always been very strong in Sydney and Melbourne, of course, but we\u2019re seeing in other parts of Australia that the auction process is really gathering pace. So, how do you prepare for it? What should you be doing when you get there?<br \/>\nWe all know about making sure you\u2019ve got the price structure right, but it\u2019s the actual bidding strategy, understanding how the auctioneer works. Let\u2019s dig a little bit into that, find out maybe a couple of strategies you might want to employ. Joining me to talk about this is property expert from Mozo, Steve Jovcevski.<br \/>\nSteve, tell me what you would advise someone maybe going to an auction this weekend, how they should be preparing for the bidding and what sort of homework they should put in before they get there?<br \/>\n<strong>Steve:\u00a0\u00a0<\/strong>The reality is no auction is similar, so be ready to change up the style based on the mood in the room. Basically, depending on the type of auction, if it\u2019s somewhere where there are three or four really active bidders, a different style may be better than where there\u2019s only one bidder. We could probably talk about the different styles, but we found that everyone has one or a couple of different categories of style, one of them being strong and silent.<br \/>\nWhat\u2019s good about that, with a smaller number of bidders in a neck-and-neck auction, a strong-and-silent bidder who pipes up occasionally with sizeable bids can really throw off the competition and pose as an intimidating figure. It shows that you\u2019re not bothering with back and forth with other bidders; you\u2019re here to buy and you have the big numbers to back it up. That\u2019s one of the more interesting ones that we found can be quite effective.<br \/>\nFor example, if there are two people going really at it with $1000 bids or pushing along and there\u2019s this one person who puts in a $10,000 or $15,000 bid every so often, quite often, that can often be effective to knock the other two out of the competition.<br \/>\nThere\u2019s another one. It\u2019s funny; I spoke to a prominent Inner West auctioneer once and asked him his advice on what the best bidding strategy is. He said \u201cWell, why doesn\u2019t everyone just come in with their best bid at the beginning, what they\u2019re willing to pay and that\u2019s it, and then walk away?\u201d<br \/>\nI thought maybe he just didn\u2019t want to do the work of doing the bidding, but he has a good point in that opening with a big splash \u2013 so if the bid\u2019s opening at $900,000 and you suddenly say $1.1 million because that\u2019s what you want to pay for it all or close to it, and basically knocking the other guys out of the competition by doing that. And quite often, that can be effective as well.<br \/>\n<strong>Kevin:\u00a0\u00a0<\/strong>I\u2019ve seen that work brilliantly, but you have to be right on the mark, haven\u2019t you? You almost have to go to the point where \u201cWell, this is the figure I\u2019d pay for it\u201d \u2013 the example you gave there was $1.1 million \u2013 because you then can\u2019t come back. You could probably come back with $50,000, but the moment you do that, you\u2019re indicating that maybe you\u2019re going over your mark, and that strategy wouldn\u2019t work.<br \/>\n<strong>Steve:\u00a0\u00a0<\/strong>That\u2019s exactly right, so hopefully you\u2019re knocking out the competition and thinking \u201cThis guy\u2019s going to keep going.\u201d But you\u2019re right, it could be that they think \u201cWell, hang on a minute. If I only put in a couple thousand more, he\u2019s not going to go any more.\u201d<br \/>\nBut the other thing is you could pay too much for it. It may not have ever got to that point, especially in the quieter market the way it is in Sydney at the moment.<br \/>\n<strong>Kevin:\u00a0\u00a0<\/strong>What about the loud and brash person? How do you feel about them?<br \/>\n<strong>Steve:\u00a0\u00a0<\/strong>I think they can be quite effective. Basically, as soon as someone\u2019s made a bid, they come back very quickly and don\u2019t give the other person time to react. So, if someone says $1,050,000 they come back $1,055,000. And then they go again, and it\u2019s just a constant barrage. They\u2019ve come out with all guns blazing, and it seems like they\u2019re determined to get the property no matter what.<br \/>\n<strong>Kevin:\u00a0\u00a0<\/strong>Agents and auctioneers love those kinds of bidders, because they\u2019re the bidders who will actually take a property up to a premium.<br \/>\n<strong>Steve:\u00a0\u00a0<\/strong>Exactly right. The problem with this \u2013 and this is where you have to be careful \u2013 is if there\u2019s more than one person doing it. If there are a few people doing it, it kind of gets lost. Like a horse race, often those who charge ahead at the start can find themselves outshone by the later players.<br \/>\nAgain, you just have to gauge the mood in the room. It could be quite effective if you\u2019re the only one. If you\u2019re one of three who are doing it, then it may not be so effective.<br \/>\n<strong>Kevin:\u00a0\u00a0<\/strong>How powerful is it to get a buyer\u2019s agent to do it for you? In other words, you don\u2019t really identify who you are.<br \/>\n<strong>Steve:\u00a0\u00a0<\/strong>We call that the invisible bidder. And it doesn\u2019t necessarily have to be a buyer\u2019s agent; it could just be someone bidding on your behalf. But it gives you that air of mystery and intimidation. You can spook other bidders.<br \/>\nWhen they see someone smartly dressed talking on the phone, it gives license to the imagination of other bidders. You could be a cashed-up property investor or a property mogul who\u2019s too busy to attend the auction.<br \/>\nThere is that intimidation, that air of mystery, and it could work in your favor. But the problem is if you\u2019re not at the auction\u2026 It\u2019s fine if it\u2019s a buyer\u2019s agent, but if you\u2019re just getting someone else to bid on your behalf it\u2019s hard to gauge the feeling in the room and whether your strategy is actually working.<br \/>\n<strong>Kevin:\u00a0\u00a0<\/strong>Yes. It must also be very hard if you\u2019re bidding over the phone, because you can\u2019t really sense what the mood is; you can only take it from someone who\u2019s on the phone.<br \/>\n<strong>Steve:\u00a0\u00a0<\/strong>Exactly, and that\u2019s the problem.<br \/>\n<strong>Kevin:\u00a0\u00a0<\/strong>What about bidding in odd numbers, Steve?<br \/>\n<strong>Steve:\u00a0\u00a0<\/strong>I\u2019ve seen this happen. It is a bit off-putting for the auctioneer especially who might sometimes get confused. This works well, I think, when you have someone who\u2019s maybe a loud and brash bidder who\u2019s coming in every second as soon as someone else makes a bid, just to slow things down.<br \/>\nBecause with the odd numbers, the auctioneer sometimes may have to write it down. So, $1,558,352. There\u2019s that period where they\u2019re so confused they actually have to get someone to write it down for them and repeat it, so that slows down the bid and quite often takes the loud and brash guy out of his strategy and puts them off.<br \/>\nThat can be effective. Sometimes, though, it can be a bit frustrating for the auctioneer. And as I said, it just depends on the mood. But what you don\u2019t want to do is upset the auctioneer too much and he starts to move forward with other bidders who are making normal bids and not paying as much attention to you. And I\u2019ve seen it happen.<br \/>\n<strong>Kevin:\u00a0\u00a0<\/strong>I have too. Yes, you can actually upset the auctioneer.<br \/>\n<strong>Steve:\u00a0\u00a0<\/strong>That\u2019s right.<br \/>\n<strong>Kevin:\u00a0\u00a0<\/strong>Well, there you go, a very good rundown on what you could do this weekend at your auction. Steve Jovcevski has been my guest, and Steve is from the home loan comparison site Mozo.<br \/>\nThanks for your time, Steve. If you\u2019re going to be bidding this weekend, all the best. I\u2019d hate to be bidding against you.<br \/>\n<strong>Steve:\u00a0\u00a0<\/strong>Yes. Thank you very much.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Do you have a bidding type? Whether it\u2019s strong and silent, loud and aggressive, or piping up at the last minute with your strongest bid &#8211; having a particular bidding style may not always play in your favour according to Steve Jovcevski from Mozo.\u00a0\u00a0 We&#8230;<\/p>\n","protected":false},"author":176692471,"featured_media":20724,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[32,10,11,13,36,22,25,27],"tags":[101],"class_list":["post-20723","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-buying-a-property-topic","category-kevin-turner-sponsored-channels","category-kevin-update","category-latest-story","category-property-investment-topic","category-research-topic","category-sponsored-channels","category-trends-topic","tag-podcast"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Set a bidding strategy to suit the market \u2013 Steve Jovcevski - Realty Talk<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/channels.realty.com.au\/realtytalk\/set-a-bidding-strategy-to-suit-the-market-steve-jovcevski\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Set a bidding strategy to suit the market \u2013 Steve Jovcevski - Realty Talk\" \/>\n<meta property=\"og:description\" content=\"Do you have a bidding type? Whether it\u2019s strong and silent, loud and aggressive, or piping up at the last minute with your strongest bid &#8211; having a particular bidding style may not always play in your favour according to Steve Jovcevski from Mozo.\u00a0\u00a0 We...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/channels.realty.com.au\/realtytalk\/set-a-bidding-strategy-to-suit-the-market-steve-jovcevski\/\" \/>\n<meta property=\"og:site_name\" content=\"Realty Talk\" \/>\n<meta property=\"article:published_time\" content=\"2018-04-03T15:00:27+00:00\" \/>\n<meta name=\"author\" content=\"rolanrush\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rolanrush\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"7 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/set-a-bidding-strategy-to-suit-the-market-steve-jovcevski\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/set-a-bidding-strategy-to-suit-the-market-steve-jovcevski\\\/\"},\"author\":{\"name\":\"rolanrush\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/#\\\/schema\\\/person\\\/384a57ac9e52cb9bf19896cb15eaa52d\"},\"headline\":\"Set a bidding strategy to suit the market \u2013 Steve Jovcevski\",\"datePublished\":\"2018-04-03T15:00:27+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/set-a-bidding-strategy-to-suit-the-market-steve-jovcevski\\\/\"},\"wordCount\":1448,\"commentCount\":0,\"image\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/set-a-bidding-strategy-to-suit-the-market-steve-jovcevski\\\/#primaryimage\"},\"thumbnailUrl\":\"\",\"keywords\":[\"podcast\"],\"articleSection\":[\"Buying a property\",\"Kevin Turner\",\"Kevin's Update\",\"Latest Stories\",\"Property Investment\",\"Research\",\"Sponsored Channels\",\"Trends\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/set-a-bidding-strategy-to-suit-the-market-steve-jovcevski\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/set-a-bidding-strategy-to-suit-the-market-steve-jovcevski\\\/\",\"url\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/set-a-bidding-strategy-to-suit-the-market-steve-jovcevski\\\/\",\"name\":\"Set a bidding strategy to suit the market \u2013 Steve Jovcevski - Realty Talk\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/set-a-bidding-strategy-to-suit-the-market-steve-jovcevski\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/set-a-bidding-strategy-to-suit-the-market-steve-jovcevski\\\/#primaryimage\"},\"thumbnailUrl\":\"\",\"datePublished\":\"2018-04-03T15:00:27+00:00\",\"author\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/#\\\/schema\\\/person\\\/384a57ac9e52cb9bf19896cb15eaa52d\"},\"breadcrumb\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/set-a-bidding-strategy-to-suit-the-market-steve-jovcevski\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/set-a-bidding-strategy-to-suit-the-market-steve-jovcevski\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/set-a-bidding-strategy-to-suit-the-market-steve-jovcevski\\\/#primaryimage\",\"url\":\"\",\"contentUrl\":\"\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/set-a-bidding-strategy-to-suit-the-market-steve-jovcevski\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Set a bidding strategy to suit the market \u2013 Steve Jovcevski\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/#website\",\"url\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/\",\"name\":\"Realty Talk\",\"description\":\"Your Trusted Voice For Property Investing. 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