Mega-Auction in South Auckland

[tanmedia]

I read about this in the Herald and I'm interested if anyone went. It looks like a sign of the times, but surely this would be better if it were held on the weekend.

http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10544875

[annaspanna]

I have just got back from it. I feel it was pretty much a big publicity stunt.
N0t much had sold, I think 3 and it began at 10.00am.

[annaspanna]

Agents were running mini Auctions for their commissions. i.e they were bidding up to 30k so that you had a pre-determined level you as a vendor were going to pay in commission.
i.e if you owned a 10mill house the most com you would have paid was 30k.

[tanmedia]

I have just got back from it. I feel it was pretty much a big publicity stunt.
N0t much had sold, I think 3 and it began at 10.00am.

Anna, sounds like an expensive publicity stunt. 3 out of a 100-odd properties is not a good strike rate!

[annaspanna]

Yes but its only 2.00pm I guess lol

[tanmedia]

Yes but its only 2.00pm I guess lol

Sorry I'm in a different time zone. Do you think this could become an ongoing event?

[annaspanna]

Well it was a good concept but you could only get enough stock when the market is as it is at the moment. There didn't seem to be much desperation there though, they weren't mortgagee, vendors weren't offloading for less than market value.

In a time when it is getting increasingly hard to obtain finance you could argue a mass Auction would not be a successfull way of selling at all.

Not many of those purchaser would have had the ability to be U/C bidders.

[annaspanna]

Funnily enough some property finding company had been around everyones cars and put flyers under their wipers saying "we will help you buy your investment properties, don't be pressured by agents with agent speak etc etc"
Cheeky, lucky 'the Don" didn't catch them lol

[tanmedia]

Well it was a good concept but you could only get enough stock when the market is as it is at the moment. There didn't seem to be much desperation there though, they weren't mortgagee, vendors weren't offloading for less than market value.

In a time when it is getting increasingly hard to obtain finance you could argue a mass Auction would not be a successfull way of selling at all.

Not many of those purchaser would have had the ability to be U/C bidders.

From what I gleaned from the Herald article, it's a good deal for the vendors in terms or reducing marketing fees (from 7K down to 2.5K), but the references to motgagee sales was oblique, except for the following: "In a trend that follows mass house selloffs in giant arenas and stadiums in the United States..."

[annaspanna]

yes I guess the negotiated commission was benefical for somE. There will be a few that will more than likely sell as a result of the Auction afterwards via negotiations.

[OllyN]

Prime News:
Eight houses sold under the hammer out of the 100 offered.
Far too many for the market to absorb. The promoters should have remembered that nothing is more desirable than the unobtainable. That applies to real estate too.

[tanmedia]

Prime News:
Eight houses sold under the hammer out of the 100 offered.
Far too many for the market to absorb. The promoters should have remembered that nothing is more desirable than the unobtainable. That applies to real estate too.

That's a philosophical way of looking at it.

[exnzpat]

Just watched it on the news (yes, I’m back in this freezing cold bumpkin backwater of a country again). 8 out of 100 houses sold. Not good. But, 3 News really plugged the real-estate industry and interest rate drops.

Obviously, 3 News were not actually paying attention when they reported that 8 houses out of 100 sold during a highly publicized and well organized auction.

It's just not that hard to see what's really going on.

[Tucker]

Doing 100 auctions in one day, in one venue, during a weekday, in this market was pretty stupid. To get any sort of bidding you needed two groups of people for each house so at least 200 buyers.

[tanmedia]

Doing 100 auctions in one day, in one venue, during a weekday, in this market was pretty stupid. To get any sort of bidding you needed two groups of people for each house so at least 200 buyers.

That's why I think it's probably a sign of the times. The REI hasn't really had to work over the last 10 years. They were able to cast their line and haul them in. Now when they actually have to hustle and look for creative solutions, they're bereft of any workable ideas.