When a seller's shill bidding friend drops out

[Clinton]

It many cases where I end up as the second highest bidder in a Flippa auction and give up on bidding I get an email from the seller a day or two later saying the original buyer dropped out and would I like a second chance. When that happens the first suspicion is shill bidding. Maybe that other bidder who was bidding against me wasn't a genuine bidder.

What would you do?

Hypothetical case:

Bidder 1: $100
Bidder 2: $200
Me: : $300
Bidder 4: $400
Me :$500
Bidder 2: $600
Me :$700
Bidder 4: $800
Me :$900
Bidder 4: $1000
Me :$1100
Bidder 4:$1200
End of auction.

If Bidder 4 drops out then should all his previous bids be ignored? Given the above example, what's a fair price at which to do a deal with the seller, and why?

[Fish]

Since Bidder 2 was willing to go $600, and likely would have whether there was Bidder 4 was there or not, I would say the last bid of $700 is fair. (Assuming he only had one shill bidder!)

[grynge]

I think fish is correct even though you were willing to go to 1100 the fair price would be somewhere between your highest bid and bidder 2 the other real bid (or in flippas case who knows probably another shill bidder lol)

Though normally what I do is let them relist it a second time and then wait till the last bid and bid.

[tke71709]

I think the real question here is why are you bidding on low-end properties like these?

I didn't think you would even get out of bed for less than $5k

I think that the fair price would be $700 as that was the last bid not related to the "shill bidder". If I were the seller I would argue $800 based on the fact that bidder 2 might have gone that high had bidder 4 not already bid that. But I would be willing to meet you halfway at $750 just to make the deal happen

[Clinton]

Repeat:

Hypothetical case:

[Fish]

I think that the fair price would be $700 as that was the last bid not related to the "shill bidder". If I were the seller I would argue $800 based on the fact that bidder 2 might have gone that high had bidder 4 not already bid that. But I would be willing to meet you halfway at $750 just to make the deal happen

By that line of argument, you could say that bidder 2 might have gone as high as $1200 had he not been watching bidder 4 do it for him. Nobody can know what bidder 2 might have done. The only thing we know for sure is that he stopped bidding at $600 and didn't take the opportunity to bid $1300 or at any point in between - which suggests he was out after $600. If find it odd that Flippa doesn't simply say it's yours at $700. To allow a relisting or other negotiation seems unfair to you as the buyer.

[KenW3]

The point made in the OP is taken, but it is simply not possible to know whether shills were present during bidding. The process referenced in post 6 of the How To Sell A Second Time (VIP Lounge thread) would provide an offer from seller to a second-highest bidder based specifically on the highest amount they were willing to pay for the purchase.

This amount offered is what you would have paid, had you won. This price is only being questioned due to speculation you may have been led to continue higher through deceptive shill bidding. The only thing known with certainty is the winner did not complete the purchase; The real reason can be any of a number of things and remains unknown.

That final bid of yours was still an amount you were willing to pay to the seller (and would have if you had not been outbid). If the final bid made was a considered and valid business purchase, take the offer.

[visegrip]

I would low ball the offer and intentionally make him re-list the auction, but this time I would snipe the bid with an automatic program. There's no need to give the buyer the option to shill the next auction. Seller figured you were willing to pay over $1100, gambled and lost. If the seller was the person shilling the bids s/he knows there is only 1 interested party. The site is only worth what a buyer wants to shell out (EP article selling websites). I'm not an expert and not claiming to be 1. Just my 2 cents!

[JJMcClure]

It occurs to me to ask the seller why the winner bailed, if they were genuine it might indicate a problem? Or is that totaly irellevant to the question.

[tke71709]

I would low ball the offer and intentionally make him re-list the auction, but this time I would snipe the bid with an automatic program.

It's been forever since I've done anything with Flippa but if I remember correctly a new bid extends the auction process by several hours.

As such it is impossible to snipe a Flippa auction.