Auction ettiquite

W

WebBoard

Guest
From: Andrew Pennisi


Have a look at jenmans 7 rules for buying at auction.The most important rule at an auction is NEVER BID UNTIL THE PROPERTY REACHES RESERVE. I use these technics all the time. The last 2 home I purchased on behalf of clients where $40,000 AND $15750
under what they where happy to pay and this was in the hot melbourne market, 1 in Essendon the other in Collingwood

http://www.jenman.com.au/REM_pg38.php
 
Last edited by a moderator:
Reply: 1
From: Apprentice Millionaire


And I take it that you know it is has reached the reserve price when the auctioneer says that "the property is now on the market". Is that right?

Cheers
Apprentice Millionaire
(showing how much of an apprentice he is :)
 
Last edited by a moderator:
W

WebBoard

Guest
Reply: 1.1
From: Andrew Pennisi


you got it
 
Last edited by a moderator:
W

WebBoard

Guest
Reply: 1.1.1
From: Scott Marshall


The Reserve is what the Vendor wants. So why wait until then if you want the property, just put in an offer before the auction. Why pay more than what the vendor wants?
Cheers
 
Last edited by a moderator:
Reply: 2
From: Brent H.


And I guess if everyone followed Neil Jenmann's advice, the Auctioneer would start the Auction with "And the property is on the market".

Scott hit the nail right on the head - if you want to pick up a bargain, the best time to do it is before the auction.

Whatever you do, just don't end up being the bloke who stops the Auctioneer to ask whether "the home is on the market" means that the reserve has been breached. That's the only bit of Auction ettiquite I reckon there should be.

Cheers

~Brent
 
Last edited by a moderator:
W

WebBoard

Guest
Reply: 2.1
From: Andrew Pennisi


Yes I agree if you can get an offer accepted before auction you are better off. Problem with this is most auctioneers will want it to go to auction so they can get their auction fee, marketing costs, profile ect ect. The thing to remember is the reserve is the lowest price the agents have been able to "crunch" sellers into accepting. This is where you have a big advantage you know there minimum they have know idea of your maximum. The best situation for you as a buyer is that they have to pass the property in. This gives you a huge advantage, now if you are bidding and helping the auctioneer to get up to the reserve then you are limiting the chance of it passing in and making it easy for the auctioneer, Why? Even with the market as hot as it is there are still up to half of the home that go to auction NOT Selling on the day (do your own research don't rely on what the agents submit to the papers)so why push the price up to get it on the market sit back and wait if it passes in you will get the chance of a real bargain. This worked again this saturday when we purchased a property for $16000 under our limit in Hampton.
 
Last edited by a moderator:
W

WebBoard

Guest
Reply: 2.1.1
From: Paul Lytwyn


Sorry for the late reply but I am catching up on the week.
Correct me if I am wrong but an Auctioneer does NOT have to declare the property "is on the Market". They may say that "they're selling" or they may say nothing. In the number of auctions I have attended this year less than half have declared the property on the market.
So...if your waiting for those fateful words you may just end up high and dry. I was told by a couple who attended a North Shore sale in 2/01 if the property was on the market? the reply from the Auctioneer was "lady you have been watching too much TV"

Cheers Paul
 
Last edited by a moderator:
Top