Auction Guidelines NSW

[NickZed]

Good morning one and all,

I am in the process of selling my apartment, which is located in NSW.

At the moment, we are week 1 into a 4 week campaign, with an Auction scheduled for late April.

At the moment on the internet listing for the apartment the agent has recommended to me that we keep the internet listing as "Bidding in excess of $x".

Let's assume for the purposes of this forum that $x is $500,000 [Purely an example]. What I would like to try and find out, prior to talking to my agent, is that, if the property does NOT get sold prior to Auction and we proceed to Auction does the bidding guide have to be updated to be reflective of:-

1) The reserve price?

For example: If we were set set the reserve at $600k - legally, does the bidding guide need to be updated to be within a certain percentage of the reserve?

2) Any offers that are not accepted prior to Auction?

For example: If I were to knock back an offer of $600k prior to auction does the guide need to be updated to be "Bidding in excess of $600k".

One other thing, the agent is going to guide me with regards to setting the reserve - however, the interests of the agent in completing a transaction are slightly at odds with my objectives of maximizing sale price. How would people go about setting a reserve - i.e. what factors would you bear in mind - for example number of registered buyers, offer prices prior to auction, Vendor belief of value of property etc etc.

Thanks a lot for your help and suggestions.
Regards
Nick

 

[Propertunity]

What I would like to try and find out, prior to talking to my agent, is that, if the property does NOT get sold prior to Auction and we proceed to Auction does the bidding guide have to be updated to be reflective of:-

1) The reserve price?

No. The reserve price can be set the night before or the day of, the auction.

For example: If we were set set the reserve at $600k - legally, does the bidding guide need to be updated to be within a certain percentage of the reserve?

No. The reserve price, is just representative of your (as a vendor) hopes and dreams. You may be dreamin'. You may be realistic.

2) Any offers that are not accepted prior to Auction?

Maybe / maybe not. Depends on the strength of the offer and if the offeror is able to make good on his/her offer or they are just words.

For example: If I were to knock back an offer of $600k prior to auction does the guide need to be updated to be "Bidding in excess of $600k".

No. This is the agent's concern anyway - not so much yours. He's the one who gets into trouble with the OFT is he's found to be underquoting.

How would people go about setting a reserve - i.e. what factors would you bear in mind - for example number of registered buyers, offer prices prior to auction,

Yes AND also comparable sales evidence.

Vendor belief of value of property etc etc.

NO, not unless it is backed up with comparable sales evidence.

All the best with the sale Nick.

 

[NickZed]

thanks Alan, as usual you have been very helpful.

Really it comes back to one important thing (with regards to setting the reserve) - what is the market value of the property (based upon comparable sales)??

I'll try to not let myself get too swayed by the agent....

Thanks
Nick