Discussion in 'Real Estate' started by Here_To_Learn, 5th Oct, 2007.
Will it work ?
Online bids spell end for street auctions | NEWS.com.au Business
I don't know if agents will like this... cause it will be a cheaper way to sell a property.. plus the agent loves the fan fair at a auction..
I'm suprised you can't already sell property on ebay.. I recon it would be a good idea. Have open for inspections each week, and the people coming can place bids online up until the end date.
u wouldnt want your internet connection to drop out....
the auction would go for 1 month, so it wouldn't matter..
Then I would make that each time someone bids, Auction is extended by another 10 mins. That way you dont get all these people bidding in the last 30 seconds.
That's good for the seller but as a buyer I would prefer it to work much like ebay with a predefined time limit.
Otherwise everyone would come in near the auction end and will push the price up...
But that is the REAL point of an auction, to achieve a fair market price.
I think an online auction, where buyers submit their best offer and have the online application handle the incremental bidding (ebay style) would get rid of much of the shannigans which happen at current real estate auctions.
Seems the website is up however no details yet !
PTY Auctions > Home
I hate Auctions full stop.. they are a waste of time for the buyer.. How are you supposed to do building inspections on Auction properties? Are you supposed to fork out $400 on each property you want to bid on? Only to find out the agent under quoted to get a Audience present?
If a vendor wants a price, advertise it, and allow negotiation to take place.. Not all this airy fairy secrecy etc..
If you read Neil Jenman's book "Don't sign anything", he actually states that auctions are not a good choice for sellers either. He explains in details, why he believes that they actually achieve a worse result for a seller, and that they are only common because they are preferred by real estate agents, as it is a perfect environment for them to get their desired end result (a sale and commision) in the shortest possible time.
If you have done your homework and have had an independent valuer help you out I am not so sure you need to fork out $400 on each property you want to bid on. You would be foolish to solely rely on what the agent tells you.
I agree. To get the best price, you need to make the sale process most comfortable for the buyer.. and most buyers don't like auctions..
Plus a Auction will never get the highest price, as there will always be someone who doesn't reach their limit.. really you only get just above the person offering the second highest price..
Plus what if your interested in two properties, the first property is Austion Sat Morning, while the second is Sat arvo.. and you would like the second one.. however you might buy the first property and not even attend the second auction!
So are you to buy a house without doing a building inspection on? How can you bid on a home with the intension of buying without doing a building inspection? A property Valuer wont help you with the condition of the house..
But surely first you would ensure the home is within your $$$ reach beforehand ?
It might be in your price range, but it doesn't mean you will buy it. You can always be out bid by someone willing/able to pay more..
Yeah, the price is variable but depends on how much interest there is in a particular property.
I think auctions in a moving market are a way to pay too much.
Additionaly, there could be other traps or hidden problems, such as building or pest issues, illegal extensions etc.
I know that pottential buyers could pay for a building and pest inspection and do the necessary searches in advance (IF they have time) but to be fair IMO these should already have been done by the vendor and the reports should be supplied to all interested parties.
Its funny that I have never seen these pest and building reports made avaliable at any Auction! I recon buyers should request one from the vendor at the vendors expense.
At least when you buy at normal sale, you can put in a clause saying 'subject to building inspection' At auction, the sale is final... but I believe you should still be able to but the same clause into the auction sale as well, if the vendor refuses to offer one up frount.
If the vendor offered you a building or pest inspection report that said everything was A OK, would you trust them? I don't think so
If it was conducted by a reputable firm, why not?
If someone selling a car offered you a RACV report would you trust it?
I would trust reports issued by profesionals.
There is too much at risk otherwise.
Someone I know bought a house at an auction and not only he paid too much
but he later found out that the back of the house was illegal and had to demolish half of it.
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