I HATE auctions!

[Thinkingbutnotdoing]

Yeah i'd way prefer an auction over the closed tenders they used to prefer in Welly (not sure if they still do). I had friends selling up there where the highest bid was $120k above the next bid - on a house that sold for $450k!!! And it wasn't an isolated instance. Myself i put a closed tender on a place about 10 years ago at 40k over GV (so 540). Top bid was 575 and sold to them....not sure where its at now but saw it back on the market a couple years ago at 520....

[Davo36]

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.

I used to sell real estate. Got out when auctions started coming in. So unethical.

[Dens]

I used to sell real estate. Got out when auctions started coming in. So unethical.

Well that’s makes one of you.
I love the agents that string everyone along with lower price expectations than reserve. Just to bolster numbers on the day. Great use of my time.

[brokerman]

Having bought two properties in recent years at Auction can definitely say they favour the well positioned buyer and not the seller. It is estimated that 80% of potential buyers either cannot or will not bid, that means only 20% can and by restricting the buyer pool the Agent is restricting the price achieved. (this is for regular property of course, not do-ups or those with development potential etc)

[Frezzinghot]

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.

You are Bang on here! And first home buyers are very inexperienced and need help bidding at auction! It’s a scary place as you win it, you buy. Ban them I say, it only benefits the agents and a few lucky vendors in a hot market.

FH

[Learning]

An old lady from the street passed away a little while ago. I miss her Christmas rum balls and the dog misses her Sunday roast leftovers. Her and her husband had the house build in the 60's. Every room still had original (or close to it) 60's wallpaper. A different pattern on every wall of the lounge and dinning room. Husband had passed and the kids all grownup and long since flown the nest. They knew me as an occasional visitor and neighbor to their mum so weeks later when they were cleaning the house I let them know I may be interested in the property if they were to sell. After having a couple estate agents look around, but before engaging one, they offered it to me at a fair price but just days before my financial situation changed and I was unable to take them up on it. They took it to auction and it was snapped up $40k below their asking price. Only one bidder. I was kicking myself!

[Keys]

.................... but just days before my financial situation changed and I was unable to take them up on it. ........................... Only one bidder. I was kicking myself!

Why kick yourself? You would have purchased if you could. You say that you were unable to take them up on it. Why look back with regrets? Don't do that. Life is too short for regrets.

[Learning]

Why kick yourself? You would have purchased if you could. You say that you were unable to take them up on it. Why look back with regrets? Don't do that. Life is too short for regrets.

True. :-)

[donna]

You are Bang on here! And first home buyers are very inexperienced and need help bidding at auction! It’s a scary place as you win it, you buy. Ban them I say, it only benefits the agents and a few lucky vendors in a hot market.

FH

Isn't this where a buyer's agent comes in? They're experienced and should do the bidding etc.

cheers,

Donna

[brokerman]

Isn't this where a buyer's agent comes in? They're experienced and should do the bidding etc.

cheers,

Donna

Only inf the buyer is in a position to perform unconditionally and that's the whole point, any are not

[Davo36]

Well that’s makes one of you.
I love the agents that string everyone along with lower price expectations than reserve. Just to bolster numbers on the day. Great use of my time.

Yep.

It's a system designed by agents for agents. Vendors and/or buyers can sometimes do well, but those are very secondary outcomes. The agents getting paid, and getting paid fast is the main reason so many auctions are held.

These are my thoughts on auctions: https://duganotherhole.home.blog/201...n-new-zealand/

[Davo36]

Having bought two properties in recent years at Auction can definitely say they favour the well positioned buyer and not the seller. It is estimated that 80% of potential buyers either cannot or will not bid, that means only 20% can and by restricting the buyer pool the Agent is restricting the price achieved. (this is for regular property of course, not do-ups or those with development potential etc)

Yep, if you're a buyer with all your ducks in a row, you can swoop in and get a bargain: https://duganotherhole.home.blog/201...n-new-zealand/

And the seller has no idea if they got a good price or not. Genius system.

[Frezzinghot]

Yep.

It's a system designed by agents for agents. Vendors and/or buyers can sometimes do well, but those are very secondary outcomes. The agents getting paid, and getting paid fast is the main reason so many auctions are held.

These are my thoughts on auctions: https://duganotherhole.home.blog/201...n-new-zealand/

Finally someone who gets it!!!

[McDuck]

Finally someone who gets it!!!

But if the Government passed a law tomorrow, saying that every agent would have to get up off their lazy a***s and actually value a property, and then advertise it with a price on it... would that be a good thing?

Would it help fit supply to demand?

Or at lest stop money being shipped overseas wholesale, in the form of bank interest caused by (FOMO driven) high mortgages?

You might find the shock from the change caused a nasty ripple.
Maybe you'd have to start gentle.
Make a law that 10% of the properties (at each agency) were marketed with a fixed price.
And that the property's had to be selected evenly from across their QV spread.

You might find some interesting dynamics arise.
Hell, i'd do it just to see the fun.

[Davo36]

But if the Government passed a law tomorrow, saying that every agent would have to get up off their lazy a***s and actually value a property, and then advertise it with a price on it... would that be a good thing?

Would it help fit supply to demand?

Or at lest stop money being shipped overseas wholesale, in the form of bank interest caused by (FOMO driven) high mortgages?

You might find the shock from the change caused a nasty ripple.
Maybe you'd have to start gentle.
Make a law that 10% of the properties (at each agency) were marketed with a fixed price.
And that the property's had to be selected evenly from across their QV spread.

You might find some interesting dynamics arise.
Hell, i'd do it just to see the fun.

I'm not advocating a law change.

Just education of the public.