Intermediate Guide 18 minute read

Bidding Strategies & Tactics

Proven strategies for successful bidding, tender preparation, and maximizing your chances of winning auctions.

Difficulty: Intermediate
Reading Time: 18 minutes
Topics Covered: Bidding tactics, auction psychology, tender strategy
Prerequisites: Due Diligence
Table of Contents
  1. Bidding Fundamentals
  2. Public Auction Strategies
  3. Sealed Tender Strategies
  4. Auction Psychology
  5. Pre-Auction Preparation
  6. Execution Day Tactics
  7. Common Mistakes to Avoid
  8. Advanced Tactics
1

Bidding Fundamentals

Successful tax sale bidding starts with understanding your maximum value and sticking to disciplined investment criteria regardless of auction emotions.

Maximum Bid Calculation

Calculate your maximum bid BEFORE the auction to avoid emotional decision-making:

Formula Components:
  • Market Value: Conservative estimate
  • Renovation Costs: + 20% contingency
  • Carrying Costs: 6-12 months
  • Transaction Costs: Legal, fees, taxes
  • Profit Margin: Minimum 20-30%
Example Calculation:
Market Value$200,000
Less: Renovation($25,000)
Less: Carrying Costs($8,000)
Less: Transaction Costs($5,000)
Less: Profit (25%)($50,000)
Maximum Bid$112,000
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