Inspired by a recent post in the Auction101 thread.
Let's say you're selling your own house that is above average in terms of price for the area - in this case over $1.3m.
You're looking for something bigger/better, but houses in that range that meet your quite specific criteria that are also in the right location don't come up all that frequently, so I'm damned if I'm selling on the off chance something might come up, especially in this fast moving market, lest I be left behind.
Therefore I cannot bid at auctions as I don't have the cash, and am not prepared to finance both properties for the time it takes to sell mine (I'd rather wait for a good offer than be pressured to sell for less). I either have to wait for tender deals, or priced ones, to come along to enable me to negotiate properly.
If I find myself in this situation, I cannot be the only one. And it is for this reason I figure that pricing or offering for tender can only be the right way to sell my own house (as a condition of purchase on the one I'm buying). You know, the old fashioned way.
Which leads to the next question - who are buying all these at-auction properties?
Obviously the issue du jour is Johnny Foreigner all cashed up, and a portion will be 1st home buyers with pre-approval (not for mid-to-upper range property though), but these two cannot account for all the auction results, can they?
Or am I being too cautious in not wanting to sell before buying, or taking on bridging finance to cater for both until mine sells?
Note I am excluding in-country investors from this query as we are talking about upper-end property, not shitbox rentals.
Let's say you're selling your own house that is above average in terms of price for the area - in this case over $1.3m.
You're looking for something bigger/better, but houses in that range that meet your quite specific criteria that are also in the right location don't come up all that frequently, so I'm damned if I'm selling on the off chance something might come up, especially in this fast moving market, lest I be left behind.
Therefore I cannot bid at auctions as I don't have the cash, and am not prepared to finance both properties for the time it takes to sell mine (I'd rather wait for a good offer than be pressured to sell for less). I either have to wait for tender deals, or priced ones, to come along to enable me to negotiate properly.
If I find myself in this situation, I cannot be the only one. And it is for this reason I figure that pricing or offering for tender can only be the right way to sell my own house (as a condition of purchase on the one I'm buying). You know, the old fashioned way.
Which leads to the next question - who are buying all these at-auction properties?
Obviously the issue du jour is Johnny Foreigner all cashed up, and a portion will be 1st home buyers with pre-approval (not for mid-to-upper range property though), but these two cannot account for all the auction results, can they?
Or am I being too cautious in not wanting to sell before buying, or taking on bridging finance to cater for both until mine sells?
Note I am excluding in-country investors from this query as we are talking about upper-end property, not shitbox rentals.
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