$1 Reserve for Blacktown house!

Discussion in 'The Buying/Selling Process' started by Jacque, 23rd Jan, 2015.

  1. Jacque

    Jacque Buyers Agent and Bookworm

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    https://www.youtube.com/watch?v=wFLUpnRktqE

    It may well be a risky strategy but I'm sure the agency would have a buyer or two lined up ready to buy at well over $1 and an "acceptable" price on the day.... got to admire the marketing though- I'm sure they'll reap the benefits via the media if they haven't done so already :D
     
  2. neK

    neK Member

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    Assuming this guy has a loan, is there something the lender can do to prevent such a sale (as it can be deemed as risky and may not be in line with the lenders policy to ensure the debt repaid... if it does sell for a much lower price than expected).
     
  3. Scott No Mates

    Scott No Mates ...and people wonder why?

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    Unless you were already holding an option or offer at a decent figure, why would you risk it?
     
  4. Jacque

    Jacque Buyers Agent and Bookworm

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    You wouldn't :D
    There's also the option of withdrawing the day before if anything goes amiss....
     
  5. james start

    james start Member

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    They only do it to attract attention and get a bigger crowd
     
  6. bumblegoodie

    bumblegoodie Call me BG

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    Isn't this type of marketing similar to under quoting? I thought this is illegal
     
  7. DaveM

    DaveM KFC Buyers Agent

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    blah blah blah it will sell 450k+
     
  8. pinkboy

    pinkboy SS Lookerafterer

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    $1 reserve is not under quoting. All the advertising implies is that if a single bid is made, the house will sell.

    Please dear God someone open the bidding at 99c !


    pinkboy
     
  9. Ed Barton

    Ed Barton Advance Australia fair

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  10. Richard Feynman

    Richard Feynman Mortgage Broker

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    I imagine it's rather unlikely that this is the first time a home has had a $1 auction reserve in NSW (as stated in the video).

    In the right market, I'd consider the same strategy myself.
     
  11. sanj

    sanj Member

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    The difference here is that it genuinely could, in theory, sell at a low price if there isn't much interest. Nothing wrong in this approach imo
     
  12. bumblegoodie

    bumblegoodie Call me BG

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    ok. funny pinkboy .... yes imagine the market back flipped!!!!!!

    NEWS HEADLINE

    "BLACKTOWN HOUSE SOLD IN SECONDS but for 99cent"


    hahahha
     
  13. pinkboy

    pinkboy SS Lookerafterer

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    Fixed that for you - $1 reserve remember?


    pinkboy :p
     
  14. bumblegoodie

    bumblegoodie Call me BG

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    hahah yes you are right!!!
     
  15. neK

    neK Member

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  16. bumblegoodie

    bumblegoodie Call me BG

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    is on the main road and i dont think is worth that much anyways.....

    i thought the average in blacktown is $550K

    i believe there are better areas in blacktown that can be purchase for that price
     
  17. Terry_w

    Terry_w Member

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    The mortgagee would need the loan paid out before it would discharge the mortgage.
     
  18. neK

    neK Member

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    So the fact that it did sell for over $565k while being on the main road means that the strategy paid off wouldnt you agree?
     
  19. RetireRich101

    RetireRich101 Member

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    It's a good strategy one off. It had all the publicity in the local papers the week leading to the auction.
    Achieving over/close to 600k would be a good result.
    It is a main road location, however internal presentation quiet ok and tenable/liveable from day one. With close proximity to the large expansion of the blacktown hospital tenancy unlikely be a problem even for main road location.
     
  20. TMNT

    TMNT Member

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    why would a low reserve have anything to do with the fiannciability ?