A House Buying Auction Strategy To Die For

I’m not sure exactly, but i estimate over the years i have witnessed possibly in excess of 1,000 house auctions. As a result one sees all sorts of methods of tackling an auction.  Right through from the hands remaining firmly in the pockets and say nothing method, to a more bullish approach of starting the Auction off high and trying to scare the other bidders off early.

Given recent media attention to the strength of the Auckland housing market, and commentary of folk “missing out” at auctions, Wednesday will go down as one of the all time most unusual auction strategies that i have seen, although not one that could be recommended to many, if any. 😉

Up for Auction was 135 Mt Albert Rd in the city fringe Auckland suburb of Mt Albert, which appeared to have possible development potential given it was on a north east facing site of 1516 sqm. The auction opened with a bid from the floor of $700,000.

A counter bidder seated upfront calmly elevated his arm raising the order of sale aloft to take the next bid. To the surprise of many, including myself and a somewhat startled auctioneer, he then left his arm aloft thru the entire auction which was moving in $50,000 increments until he held the top bid at $1,500,000. Talk about sending a confident signal to the other buyers in the room. Not long after some of the under bidders had picked their jaws up off the floor, the property was knocked down to him at $1,580,000.

Oh to have the confidence and financial wherewithal to bid in such fashion hey….