You may bid any amount, from $0.01 up.  Understand that the initial bid simply says, "Yes, I'm interested in bidding during the Round-Robin phase".  That said, there are bidding strategies that will allow you to purchase the property for the least amount of money and still end up the high bidder.  Read on...

First, determine what you think the property is worth.

Next, decide what the maximum you are willing to pay for it.  DON'T GO OVER THAT AMOUNT!  Know the number and how it compares to what you believe the house is actually worth.  If you really want the house, and it is worth the amount, then you may have a higher maximum than another bidder, and still be able to get the property for less than it is worth.

Now, the trick is to figure out how to be the first one to bid what you think the property will sell for, without going over your maximum, and to be the highest bidder at the end.  It really isn't all that hard.

Lets use an example.  The home is offered for $99,500 or Best Offer.  You know from your research that the homes very much like this one, in the same area, are for sale at around $200,000.  One down the street has been on the market for 6 months, and the price has dropped to $190,000.

You also know from your research than anything under $175,000 is a real steal, so anything between $175,000 and $190,000 is a bargain, which is probably where the home will sell for, or more if a buyer really wants this exact property.

If you are one of the first to bid, and you want this home if you can get it at a good price.  What should you bid?  Well, in my opinion, your first bid should be $150,000. 

Why?  There is no point in bidding at or below the starting price of $99,500 if you know that the home will sell for much more than that, and you are serious about being the high bidder.  This bid is a signal to everyone that you are serious about purchasing the property.

This will scare of the bottom feeders and lookie-loos, and will make the final round-robin bidding faster and simpler, and get rid of those that only want the property at a steal.  Now you have less competition for the final bid.

And if you are NOT the first bid?  Same thing.  Outbid the top bidder.  Example, if the top bid is $160,000 and you know everything under $175,000 is a real steal, bid $175,000.  Same logic as above.  Since you've done your homework, you would be thrilled to get this home at $175,000, or even a little higher.

By bidding intelligently, you signal that you are the buyer who is willing and able to pay the most, but you will actually pay the least by using the above strategy.

Also, never announce your maximum.  If the bidding goes past your maximum, simply stop bidding.

Last, understand that no bid is binding on the bidder or the seller.  The seller reserves the right to not sell the property if the high bid is not adequate, and all bidders may withdraw their bid up until the time a formal written purchase contract is signed.

The One Week Sale Method 

  • Sell In One Week
  • Bidding Rules
  • Terms of Sale - MUST READ PRIOR TO BIDDING