$1 Reserve for Blacktown house!

[Jacque]

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

 

[neK]

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).

 

[Scott No Mates]

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

 

[Jacque]

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

You wouldn't
There's also the option of withdrawing the day before if anything goes amiss....

 

[james start]

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

 

[bumblegoodie]

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

 

[DaveM]

blah blah blah it will sell 450k+

 

[pinkboy]

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

$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

 

[Ed Barton]

Brisbane beats that. No reserve auction - http://www.brisbanetimes.com.au/que...roves-winning-combination-20111008-1lf8a.html

It will do well.

 

[Richard Feynman]

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.

 

[sanj]

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

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

 

[bumblegoodie]

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

NEWS HEADLINE

"BLACKTOWN HOUSE SOLD IN SECONDS but for 99cent"


hahahha

 

[pinkboy]

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

NEWS HEADLINE

"BLACKTOWN HOUSE PASSED IN for 99cent"


hahahha

Fixed that for you - $1 reserve remember?


pinkboy

 

[bumblegoodie]

Fixed that for you - $1 reserve remember?


pinkboy

hahah yes you are right!!!

 

[neK]

Did the strategy really pay off?
It sold for $565k... what are houses worth in that area?

http://www.domain.com.au/property/sold/house/nsw/blacktown/?adid=2011564208&sp=1

230 Blacktown Road Blacktown

 

[bumblegoodie]

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

 

[Terry_w]

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).

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

 

[neK]

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

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?

 

[RetireRich101]

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.

 

[TMNT]

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