WHITEFOX Advocacy: Our 3-stage approach to auctions

Pre-Auction: Setting the Foundation

 

1. Pricing Analysis for Our Clients

The journey begins with a comprehensive pricing analysis tailored to each client’s unique needs. Our team assesses the property’s market value, potential for value appreciation, and historical data to arrive at an accurate price range.

2. Determining Price Brackets

One of the cornerstones of our strategy is determining clear price brackets:

Below Market Value: If there is a lack of interest from the market, a value we believe we can purchase the property for.

Fair Value: A realistic estimate of what the property is truly worth.

With Competition: Identifying scenarios with multiple bidders and a price we expect it to reach.

Overpaying: Recognising situations where emotional bidding might lead to overpaying.

3. Setting Expectations

By establishing these price brackets, we set clear expectations for our clients leading into auction day. This prevents them from chasing unrealistic bargains and keeps them focused on making informed decisions.

4. Scoping Out Pre-Auction Opportunities

While there are rarely true bargains in the real estate market, opportunities do exist. We actively scout for properties that may be purchased before they hit the auction block, giving our clients a head start in securing their dream property.

5. Pre-Auction Offers

Making pre-auction offers at realistic prices is a valuable strategy. Not only can it secure the property before auction, but it can also unsettle other interested parties, potentially discouraging emotional bidding on auction day.

On The Day: Staying Disciplined

 

1. Per Above, Pricing Parameters Are Set

On auction day, our clients are armed with pricing parameters that have been carefully established beforehand. This ensures that they enter the auction with a clear plan and budget in mind and the ability to leave the hard work (bidding and negotiating) to our capable advocates.

2. Managing Emotions

During an auction, the excitement and adrenaline can make bidding feel like a game of ‘Monopoly money.’ We take the emotion out of the equation for our clients, helping them stay focused and disciplined.

3. Playing the Auction Game

Sometimes, winning at an auction is akin to playing poker. We employ tactics to gauge when the competition is nearing their limit, and at times, we even make them believe that we have an unlimited budget. This strategic approach gives our clients a competitive edge.

After an Auction: Learning from the Experience

 

1. Managing Disappointment

Not every auction ends in victory, and that’s perfectly fine. Having a plan in place when it comes to pricing helps clients manage disappointment and avoid rash decisions.

2. Assessing Value

If a property sells beyond the agreed-upon number, we carefully assess whether it represented great value on the day. This post-auction evaluation helps us fine-tune our strategies for future purchases.

3. Avoiding Common Pitfalls

Disappointment and fear of missing out (FOMO) are common factors that can lead to buying the wrong property or overpaying. Our goal is to protect our clients from these pitfalls by providing a structured and strategic approach to property acquisition.

In conclusion, our three-stage approach – Pre-Auction, On The Day, and After an Auction – is designed to empower our advocates to assist clients in securing their dream properties while mitigating the risks associated with emotional bidding and overpaying. We believe that a well-executed plan is the key to success in the competitive world of property auctions.