Investor · Tampa, FL · Member since 2010 · 377 posts · 56 votes
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?
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.
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
... Sitting in an office and making bids sounds like a dream!
But then you lose something too. There is some amusement by observing other people cringing as they bid upward (likely due to nearing their bid limits, and feeling pain as they have to get out of the comfort zone).
You'd miss those spectators who come to watch their house or their neighbor's house get sold (and in the summer they even bring their kids sometimes too, guess no babysitter at home).
You'd miss knowing who you're bidding against - and if you know somebody's bidding style and methods, you can sometimes use that to your advantage for your own bidding.
You'd miss knowing how competitive the bidding got (or didn't get) for properties (where you may have only had a passing interest).
Just a few things you miss when you lose on the interpersonal interactions that can only happen in person!