Join our investing community

More auction woes

Discussion in 'Real Estate' started by Jacque, 23rd Apr, 2007.

  1. Jacque

    Jacque Team InvestEd

    Joined:
    16th Jun, 2005
    Posts:
    1,885
    Location:
    Sydney
    Yet another article about auctions in The Age, where the capital city of Auctions, Melbourne, comes in under scathing attack from some BA's on the practices that make it difficult for purchasers to get a fair deal.

    http://www.domain.com.au/Public/Art...=NationalIndex&headline=Which price is right?

    I still support the idea that the reserve price for any auction should be disclosed to all interested purchasers prior. At least it provides buyers with a fair chance and saves them wasting their hard earned dollars on something they never had a genuine chance at in the first place (not to mention the emotional stress often caused by misinformation).
     
  2. Gonzo

    Gonzo Well-Known Member

    Joined:
    16th Aug, 2005
    Posts:
    49
    Location:
    Singapore
    I always thought the reserve price should be known and that price can be used as the "expected" sale price. I have never understood how an auction can go 10-15% above the expected sales range yet still not hit the reserve price.
     
  3. PiggyBank

    PiggyBank Member

    Joined:
    16th Aug, 2005
    Posts:
    13
    Range creep

    I am looking at areas not far from Hawthorn and another phenomenon I have noticed is the buyer range going up slowly over the period that its advertised; especially from a particular RE that is very active in that area. So whenever I see a new property from them with certain amount as range, I know its gonna go up 50-80k (10%) more closer to the auction date.

    But generally I think the market (areas I am looking) is so hot compared to 6 months ago that its hard put a range based on previous sales and be accurate.

    PB
     
  4. Jacque

    Jacque Team InvestEd

    Joined:
    16th Jun, 2005
    Posts:
    1,885
    Location:
    Sydney
    Good point, as in rising markets, emotions can run even higher as buyers suffer from "missing out" anxiety when buying, especially at auction.
     
  5. shake-the-disease

    shake-the-disease Well-Known Member

    Joined:
    9th Jun, 2006
    Posts:
    61
    Location:
    Melbourne
    Jacque, I hope you'll be pushing for the minimum price that vendors would accept in a sale by negotiation to be disclosed also, not just the advertised price. :rolleyes:
     
  6. Jacque

    Jacque Team InvestEd

    Joined:
    16th Jun, 2005
    Posts:
    1,885
    Location:
    Sydney
    Well naturally :)
    I do the best for my clients at all times.