I HATE auctions!

[Frezzinghot]

So I have come to the conclusion that I hate auctions.

Here are my reasons why.

Went to an auction today at the barefoot & thompson auction rooms. Firstly you cannot find a park for love nor money. You then rush in to the auction room to catch your lot number.
The going was slow today, with very few buyers, so what does the auctioneer do? He drags out the process, with little bidders, the auction lots are slow going, painfully slow as the auctioneer
and his sidekick try to get every last cent out of the room. Time between lots is slow, I'm looking at my watch, need to go back to work, auctioneers are in no hurry.

As we approach our lot number, the opening bid is near our top offer, walk straight out, waste of my time, someone wanted the property bad enough to pay probably 90k more than it was worth.
Complete waste of my time, lucky we did not spend a cent on DD, only auction I would attend in the future will be on the end of a cell phone bidding remotely.
Feel as though you could waste a lot of time in auction rooms, time I do not have.

Only positive out of the day was a bit of market intel, market is not as hot as the media and the like suggest, buyers are definitely more cautious and vendors just defiant.

FH

[McDuck]

So I have come to the conclusion that I hate auctions.

Ha.
So true.

They are designed to bring out the crazy side of the human brain.
The animal side, rather than the cool reasoning side.

It's pretty obvious to me that they should be banned totally.
You really want markets to act rationally.

It just makes for a more harmonious economy.

It's probably a really smart cheap way for the government to ease the housing situation.

When they do it, I'll forever call it the FREEZINGHOT solution.
Make it a law that every house must have a price.
That way good folk like yourself don't waste time, money and petrol entertaining the real estate industry.

If you really wat to have a colourful vibrant society (with lots of chaos)..
The frenzy of an auction could be left to nonessential items.
Possibly high end cars or fashion for the younger ones.
Get your hit but don't twist out the numbers on an essential good (like shelter).

Meh, Sounds like house auctions are dying a natural death anyway.

[artemis]

I've mentioned our auction experience here before, but just wanted to say auctions can work for the buyer. Our story - 4 beddie a block from Wellington Hospital. We did our own inspection and looked carefully at the council property file. Well well well, no CCC for the new almost complete bathroom, toilet and laundry extension despite what the agreement and other provided info said.

We said not a single word until we rocked up on auction day, asked the agent at the door to explain. Urgent closed door discussions (would have been interesting being a fly on that wall), and auction opened with 'the problem'. Predictable result on bidding. We ended top bidder but well below the (reasonable) reserve, and closed the deal for a few thou more. Bargain.

Some hassles getting tradie signoffs and finishing the job, and there was a disagreement about the new roof guttering between the plumber and the council, but probably made about a thou an hour for the effort!

Previous owner had bought elsewhere and had no money to finish the job. Desperate.

[Rosco]

Only positive out of the day was a bit of market intel, market is not as hot as the media and the like suggest, buyers are definitely more cautious and vendors just defiant.

FH

What area? Auckland I'm guessing?

Ross

[Frezzinghot]

What area? Auckland I'm guessing?

Ross

Yes Auckland.

[Frezzinghot]

When they do it, I'll forever call it the FREEZINGHOT solution.
Make it a law that every house must have a price.
That way good folk like yourself don't waste time, money and petrol entertaining the real estate industry.
[/QUOTE]

Then again, in a hot market the auction process works well so I guess the process depends on which side of the fence you sit on, but watching yesterday as the buyers/sellers were playing tug of war with the piggy in the middle agents running around like headless chickens was just downright tedious and tiresome to watch!

No thanks in future, mass auctions in this market is for people who have time on their hands and play money in their pocket, good luck to them, I’m out!

FH

[Beano]

Tenders are worse
With auctions you can pay $1 more than the second bidder.
With tenders you can pay $1m more !

[Frezzinghot]

Tenders are worse
With auctions you can pay $1 more than the second bidder.
With tenders you can pay $1m more !

Oh yes, especially if you haven’t done your homework!

[Beano]

Oh yes, especially if you haven’t done your homework!

Even when you do your homework you can pay well inexcess of the second tenderer! :-(

[Rosco]

Hamilton Auctions today

Lodge - sold all except 1, i think was around 8
Lugtons - sold all , maybe 6

Ross

[McDuck]

Then again, in a hot market the auction process works well so I guess the process depends on which side of the fence you sit on, but watching yesterday as the buyers/sellers were playing tug of war with the piggy in the middle agents running around like headless chickens was just downright tedious and tiresome to watch!

No thanks in future, mass auctions in this market is for people who have time on their hands and play money in their pocket, good luck to them, I’m out!

FH

Ha.

Yes, in some ways irrational buying frenzies work for sellers, but...da da daaa.. you loose what you gain as soon as you move on to the next step in your process, the buying of your next house.

Nope, while the middle men try and tell you its working for you, it's really not.

It's working for them.

While you would loose some opportunities from a" fixed house price requirement on every house", … you would gain other opportunities.

Other ways to take advantage of a new system.

[Viking]

Noticed that in the last month nearly every property is going to auction.

Mean not a good time to buy unless you spot a real bargain.

[Frezzinghot]

Noticed that in the last month nearly every property is going to auction.

Mean not a good time to buy unless you spot a real bargain.

Yes all the agents are jumping on he band wagon now, do you think they are all trying to make hay while the sun shines? I think this winter and the election will slow things down quite considerably! With all this good weather buyers feel good with all the warm fuzzies!

[brokerman]

Agents using Auctions to first home buyers should be banned. These are a vulnerable group and to get to a position to bid many need their own LIM (not vendor supplied) building report (which Agents shy away from) and if high LVR, a Registered Valuation. Total cost over $1600. Add to that the costs in processing applications that go nowhere. If they don't win they have to start over and I know over several who have repeated this then given up on due diligence and bought a dog. Just plain wrong in my opinion.

[Dens]

Agents using Auctions to first home buyers should be banned. These are a vulnerable group and to get to a position to bid many need their own LIM (not vendor supplied) building report (which Agents shy away from) and if high LVR, a Registered Valuation. Total cost over $1600. Add to that the costs in processing applications that go nowhere. If they don't win they have to start over and I know over several who have repeated this then given up on due diligence and bought a dog. Just plain wrong in my opinion.

Even for investing. Exactly this reason I don't consider auctions. Especially if you're looking at multiple properties, it starts to add up very quickly. How many more auctions can you afford? You start to think of the sunk cost and consider bidding higher to not have to go through that again.
I won't buy without a report, dodged a few bullets, so that's not an option for me.
One less raised hand in the auction room for you guys, though... you're welcome.