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$10,000 drop in house prices helping buyers

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  • #16
    Originally posted by damage View Post
    The so called low ball offer would be greater than the reserve I would have thought?
    Also, how would a closed tender be useful when time is constrained? Surely a fixed / open price would be better if you are in a hurry?
    Closed tender sets a deadline, just like an auction. If you need a result in 6 weeks do a 6 weeks tender campaign.

    Most auctions I have been to in the last year involved the auctioneer having a very passionate conversation with himself about what the vendors wished the price was, with absolutely NO action from the floor. About 1 in 5 properties got a single bid from a single bidder, way below reserve, and many of them turned out to be the same offer the same buyer had made before the auction campaign had started.

    If you are in a really really desperate hurry then a fixed price can work (as long as it is clear you are giving away the property way below market value).

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    • #17
      Originally posted by Robin McCandless View Post
      Closed tender sets a deadline, just like an auction. If you need a result in 6 weeks do a 6 weeks tender campaign.

      Most auctions I have been to in the last year involved the auctioneer having a very passionate conversation with himself about what the vendors wished the price was, with absolutely NO action from the floor. About 1 in 5 properties got a single bid from a single bidder, way below reserve, and many of them turned out to be the same offer the same buyer had made before the auction campaign had started.

      If you are in a really really desperate hurry then a fixed price can work (as long as it is clear you are giving away the property way below market value).
      Market value is what someone will pay for it, not what the agent thinks it might be worth.

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      • #18
        Originally posted by Keys View Post
        If there is only the one bid and it's 10% below the reserve. Where do you go? If there are two bidders and the winner could have gone to 15% above the competing bidder...................
        In that case, it is clear the reserve is too high.
        Where do you go from there?, easy... lower the price.

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        • #19
          Originally posted by damage View Post
          In that case, it is clear the reserve is too high.
          Where do you go from there?, easy... lower the price.
          Let's modify that a little then. If the one bid is on reserve but the winner could have easily gone another several if not tens of thousands more?

          I hate auctions.
          www.3888444.co.nz
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          • #20
            Has anyone looked at reinz new stats for March?

            I notice that the median sale price is up to $365k, which is above the 2007 peak!

            Ross
            Book a free chat here
            Ross Barnett - Property Accountant

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            • #21
              Yep - and some are still saying house prices are going downhill, the crash is coming and get out now.

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              • #22
                Heard a story recently from a couple who were very happy with the auction of their home - the first bid came in $12,000 ABOVE their reserve. The auctioneer didn't disclose that the property was on the market and went to "consult with the vendor". On return, he had managed to talk the buyer up another $18,000. Good work by the auctioneer, but does show that being educated in the process is important - if you ask 'are we on the market?' they have to answer truthfully.
                DFTBA

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