Search results
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...
People also ask
How does shill bidding affect the auction process?
What is shill bidding?
Is shill bidding a crime?
Can a newbie be a shill bidder?
I'd imagine not everything is set up on a reserve, but they may be bringing in a dozen or two value items to make the auction look nicer, which also serves as free advertising for the auctioneer. Here's a good example being done at one near me. These sold for $90 a piece, username bid on a lot of other stuff too. $90 PLUS 18% buyer's premium.
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: The shill bids and if the bidding only reaches an amount less than Frank is willing to accept, the shill buys the item, and would then typically pay for the item and return ...
To me, this takes the legitimacy out of an auction. It opens the door to shill bidding, both by allowing the auctioneer to see a max bid, and the seller to run up their own items. It also allows the auctioneer by use of having seen your max bid, to run items up, costing you more money.
Jun 28, 2021 · A consignment auction is when someone hands their goods to the third party, usually the auction house, but retains ownership of the goods until they are sold. This can be done for both auction houses and in-store sales. The auction house or auction agent then sells the goods on behalf of the owner, as per their instructions.
Jan 8, 2019 · Mostly a newbie who is constantly bidding on several auctions but of the same seller can pretty much be a shill bidder. This is because the aim is to offer only on the items of interest and not just everything. They aim to achieve a higher sale on a particular seller's goods. 4. Ideally, a shill bidder will only place bids on specific auctions.
