Okay, you have taken the necessary time and made the efforts to research the next tax sale. The auction is scheduled to begin soon, are there any steps you can take to improve your chances of getting a property? Depending on the auction style, the answer is yes, and our very own “Coach Bob" tells you how. . .
Every tax sale has its own rules for bidding. Sometimes there is a professional auctioneer who will control the pace of the bid increments. In this case, your opportunities for creative strategy are pretty limited. The bidding may go beyond the maximum you are willing to spend. “Coach Bob" tells us that his favorite auctions are the ones where the individual investors shout out their bid, and the property goes to the highest bidder. This situation allows you to use bidding tactics to your benefit.
Everyone has their own bidding style. At my most recent workshop in Phoenix, Arizona; “Coach Krystal" from our team described some of her strategies to our students, and I noticed that they were different from my own. Discover what works for you, and keep doing it. Here are some helpful tips that may make all the difference in the world, at your next auction opportunity.
1. Reference every property you are interested in with a tracking number or reference name. Be consistent in labeling your properties with all of your maps and bid sheets, in order to avoid confusion. Make sure your personally created spreadsheets are easy to read and navigate. Use different colors to highlight properties you like best.
2. Have your bid list ready. At large auctions, things happen fast! If you are disorganized, you could lose your favorite property before you know what happened.
3. Speak loudly enough that everyone can hear you. The auction might be held in a large room, or outdoors near busy roads. Everyone in the crowd should be able to hear you the first time. An auctioneer may ignore you if you mumble or talk to quietly one time too many.
4. Know in advance what your maximum bid will be, and how much you are willing to spend.
5. Have an exit strategy for each property you are bidding on. The exit strategy will affect how much you are willing to pay. (by exit strategy, I mean what are you going to do with the property once you own it)
6. When your property is announced, pause. . . take a couple seconds to see whether anyone else is going to bid. If two or more investors join the battle, keep quiet. Entering your bid will only fan the flames, wait until only one person is left, then jump in.
7. If no one else bids when your opening bid is announced, take the innitiative. Forcefully offer the minimum bid. With your voice, and body language let everyone know that you mean business. . . even if you are about to have heart failure and cannot breathe due to the incredible deal you have just fallen into!
8. Avoid being predictable. If you raise the bid by 1k then 1,000, then 500, then 100; your opponents will know you are running low and reaching your maximum bid. Mix up your bid increments, so that no one will know when you have reached your maximum.
9. Have a maximum bid and do not make it a round number. I have bought several properties in situations where it was clear the bidder prior to my bid was set at an even round number. A simple $150 increase in your maximum, could win the bid.
10. Strategic pauses sometimes work. Letting the auctioneer say “going once, going twice" before announcing your bid. This will sometimes work and catch your opponent off guard and you will win the bid.
Now you know ten of our very own “Coach Bob's" bidding secrets. Get out there, have some fun, and buy some properties for pennies on the dollar! And remember SUCCESSFUL PEOPLE USE COACHES! The sky is the limit when you have a coach on your side. If you want to learn more about coaching or the topic discussed in this article visit us online!
For more information on Tax Lien or Tax Deed Auctions please visit us online at http://www.ultimatetaxlienguide.com or http://www.tedthomas.com
Ted Thomas Bio: Ted Thomas is a Florida based publisher and author of numerous money making Home Study Courses. Ted is the guy people go to when they want to improve their business marketing and sales results. Ted's Marketing Master Mind sessions are attended by the important people that make up the Information Marketing Industry. Ted is a recognized expert and in-demand speaker in the United States and in Canada on the subjects of Government Secured and Guaranteed certificates. His title “The Foreclosure Authority" generates many consulting requests. More than 100,000 students have success -fully completed Ted Thomas’ Home Study Courses. Ted Thomas
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