Quote:
Originally Posted by Snapolit1
Seems the most logical approach to all of this is to place early, losing bids, put a marker down, and then come back on the last night and come up with a strategy for the wee hours, remembering the 20% add on at the end.
Is there any conceivable strategy that supports multiple bids over the next 4 weeks? Can't think of one.
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Well, there is a strategy I've set out on this Board before that I call "blocking", but some posters don't acknowledge the merit of it.
Here goes anyhow...
Given the low starting bids and the fact that almost nothing in an REA auction gets "stolen" all said, then there are a certain number of lower-than-market bid increments for each lot from the outset. Let's say that number is 10 increments. If you bid once, and everyone else does the same, you have to compete with 9 other bidders in OT.
Instead let's say that every time someone tops you, then you place the next bid on these preliminary increments. Now you have placed 5 of the 10 initial bids and cut the number of your OT competitors in half. If you and someone else both are employing this strategy, the lot could hit OT with only 2 bidders competing.
To me, this is an advantage at least on the odds and percentages. I think for the most part people who have disagreed this has any merit are basing that opinion on the fact that even if you cut it to 2-3, you don't know who those people are or how much they are willing to pay. It only takes one person with deep pockets to kick your butt and destroy any strategy you have.
All that is true, but in my view it is a percentages game and a "blocking" strategy can and should pay off if you are chasing a bunch of lots.
Cheers,
Blair