Why are there Decoys at the auction?

Question

Hi Everyone,

I realized that some veterans at the auction will have decoys bid for them.

For example, John is the veteran investor. Bill is the noobie. John tells Bill to bid on that property for him up to X under Bill's auction ID. Once Bill wins the bid, John comes up to pay for it.

Why do they do this? I'm thinking it could be because John, the Veteran, doesn't want other noobies to piggy back him because they know the properties he chooses is the good stuff?

Thanks in advance for any thoughts!  :D

Tony Nguyen · Answer

Steve - very true. The psychological stages a bidder go through are so transparent sometimes and is truly amusing to watch!

Tony Nguyen · Answer

Rich - Thanks for your reply. I see your point, but the auction here in Orlando is not a circus - 1 trustee, 1 property at a time.

I hope our county go online like Lake County did. That would make things so much smoother. Sitting in an office and making bids sounds like a dream!

Rich Weese · Answer

In Texas- Auctions are held once a month. All the trustees are there barking out their properties at the same time. A literal 3 ring circus. I had 2 additional bidders with my targeted properties and amounts so all rings of the circus could be handled. Then, if the bid is won, trustee asks the name for title and my name is given. Then, I go in the little county office and hand them cashiers checks. 
      In my FL county, completely different. Itis online and no one knows who is bidding till bid is accepted. Pretty cool. My PA sits in his office and bids.

I don't thin I'd call them decoys in my experiences. Really fun and gets the adrenaline flowing. Rich

Account Closed · Answer

I suspect your right.  If you go to a number of these I suspect you would find the same players there quite frequently.  Over time they may win less because of the herd mentality.