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Shady auction tactic
- Shill bidding is one of the most common examples of a shady auction tactic. In shill bidding, a seller will have a friend or family member place bids to drive up the competition. While the backfire could lead to the “fake” bidder having to pay up, the potential benefit could gain the seller a lot of profit.
blog.realtyhive.com › shill-bidding-other-shady-auction-tacticsReal Estate 101: Shill Bidding & Other Shady Auction Tactics
Nov 25, 2010 · What shill bidding involves is bidding without the genuine intent to purchase, and rather with the intent to ensure price protection for the seller by one of two methods:
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Apr 15, 2020 · What is shill bidding? Essentially, shill bidding refers to the practice of a seller using another user identification, which they have created, then using it to bid on their listings. They sometimes even go to the extent of creating and using multiple accounts all in their favor.
- Shill Bidding
- Adding Time
- Reserve Price
- Overpriced Listing
Shill bidding is one of the most common examples of a shady auction tactic. In shill bidding, a seller will have a friend or family member place bids to drive up the competition. While the backfire could lead to the “fake” bidder having to pay up, the potential benefit could gain the seller a lot of profit. When it comes to selling a house, shill b...
Most auctions have a set time where people can place bids. At the end of that time, the highest bid is the winner — a format most of us are very familiar with. However, some auction sites saythey have a set time but it’s not actually the case. For example, a site might hold bidding from 10 a.m. to 4 p.m. If a bid comes in at 3:59, they add two more...
Some auction sites say that a seller can only sell when a Reserve price is met. Oftentimes, they won’t tell the buyer what this is. If this mysterious Reserve price isn’t met, the site might put the property for sale again. This tactic might not hurt someone outright, but it could still pose an inconvenience. At the very least, it’s best to work wi...
Savvy buyers and those who work with agentswill likely not have to worry about this, but it’s a shady auction tactic to watch for all the same. An auction site might take a home that’s worth, say, $300k and put the opening bid at $400k. Again, this helps the seller but drives the price up for the buyer, unnecessarily. More than anything, when it co...
It’s pretty easy to tell when shill bidding is going on because the same bidder number will bid on every item a seller has for sale. The reason why you sometimes only see 2-3 bidders competing on the same thing is because it only takes two people who really want an item to drive the price up, and that’s pretty common.
Shill bidding happens when anyone—including family, friends, roommates, employees, or online connections—bids on an item with the intent to artificially increase its price or desirability. In addition, members cannot bid on or buy items in order to.
Then when the auction is about to terminate, the buyer retracts the bid on one of their accounts. The as-seen price now goes back to 99 cents, and if nobody sees the item before it ends, they get it for 99 cents. In reality, it just gives real buyers a very short time to put in a bid.
Shill bidding refers to the practice where a seller or an accomplice places bids on an item at an auction to artificially inflate its price. This unethical tactic is used to create the illusion of demand, which can mislead genuine bidders into believing that the item is worth more than it actually is.
