Auction - Passed in does this mean it will go for less?

[neaka]

We went to our first 'research' based auction today! The house was in Burnley/ Richmond VIC, vendor 'expecting' $600K (it needed ALOT of work, the floors were sloping and soft and you would have to pretty much gut the inside).
The Auctioneer started the bidding at $500k, he said that anyone who made a bid at $500k would have the chance to bargain with the vendor.
Nobody made a bid.

Couple of questions?
-Does this mean the property may go for alot less than expected ie. closer to $500k?

-If i call the agent on Monday would he disclose the sale price if it did end up selling?

-Do they set another auction date for properties that are passed in or are they more likely to take private offers?

TIA!!

 

[Dazz]

1. Based on your extensive due diligence, what do you think it's worth ??

2. Most agent's won't disclose details to the public until the contract is either unconditional or fully settled.

3. Why phaff about with what they agent might or mightn't do. Why not be outrageously gutsy and actually talk face to face with the Vendor. Strange concept I know, and fully discouraged from all in the RE industry.....but sometimes they actually talk back and you can have a human conversation with them face to face.

 

[hobo-jo]

3. Why phaff about with what they agent might or mightn't do. Why not be outrageously gutsy and actually talk face to face with the Vendor. Strange concept I know, and fully discouraged from all in the RE industry.....but sometimes they actually talk back and you can have a human conversation with them face to face.

How often would someone get the chance to do this? It's not like the RE agent is going to just hand out the vendors details...are there any easy ways to get the details of the seller behind the agent?

neaka, our PPOR was bought at an auction that had not met reserve.

We put in an offer of $290k before the auction, was rejected. Went to the auction (not to bid, we weren't in a position to meet auction conditions/contract type). Bidding stopped at around $275k. Auctioneer made vendor bid/reserve of $280k, no further offers out loud. Auctioneer went around to several of the bidders to talk in confidence. Heard mutterings of low $280's from the interested parties. Auctioneer pulled us aside and asked if we were still interested at our original offer. I would have liked to have beat him down a few thousand $ and probably could have if it wasn't for my other half hanging off my arm yelling 'we got it, we got it' . We went inside and signed the contracts at $290k. Looking back it was probably $5k or so over market if not right on market value, but doesn't both me now after 20%+ gains since we bought 18 months ago.

Did you hang around after the auction to see if the auctioneer/RA agent spoke to anyone privately? You may find it already sold privately after the auction, I believe many that are passed in at auction do...

 

[BayView]

If it was passed in then it means that the property is too expensive, or the buyers have disappeared.

Given the state of the interest rates and the mood of everyone, I'm not surprised if it is the latter.

1. This should mean it will go for less than the expected $600k. Make an offer based on what you think it's worth.

2. The agent will normally tell you the sale price unless they are under privacy instructions from the Vendor.

3. If they are stupid, they will re-schedule another auction. Otherwise, they will be looking for offers.

 

[Firsthomelooker]

How often would someone get the chance to do this? It's not like the RE agent is going to just hand out the vendors details...are there any easy ways to get the details of the seller behind the agent?

I'm not sure about other states, but in NSW and the ACT at least the vendors name and address will be on the contract and in the title search. You could try seeing if they are listed in the whitepages.

I'm not sure the vendor will want to talk to you though. They will have to pay the agents commission regardless and most feel like they have an upper hand in getting the 'qualified and experienced' agent to negotiate on their behalf.

 

[GoAnna!]

Likely to be listed at set price this week. This will give away the vendors reserve normally.

Will likely sell at less than $500K from an auction attendee or closer to the asking price from some-one who has no idea what happened at the auction If you are interested you need to work out the value to you, and with the added advantage of knowing the complete lack of interest at auction.

If still on the market in a couple of weeks time the owners are likely to be more negotable (read anxious).

 

[Muffinman]

Call the agent and ask what sort of figure they are chassing often they are not willing to give you the reserve amount most dont?
Usually the agent will ask you to make an offer, as always offer lower then normal.
The agent will come back saying you need to add another 50k as an example before client is willing to consider.
Make a counter offer say example 30k , wait it out and it's only a matter of time the agent will come back with a more exact figure what the client is wanting.

This is the the deciding time.

I'm really looking forward to the launch of Online Auctions this will really change the market I feel.

Real Estate Cutting Edge Technology

 

[RetireEarly]

check the herald sun in the results section, the reserve price should be advertised.

 

[willfong]

If it's the one on Adam st, reserve is 629k according to Sunday paper.

 

[Soren Lorenson]

It could have sold after for more sometimes,

some potential buyer may have kept quiet to approached agent later with view to Private sale so they can get their conditions into the contract, building/pest finance etc, because the can't do it at auction.

ring the RE agent tomorrow and play it by ear.

 

[Muffinman]

check the herald sun in the results section, the reserve price should be advertised.

I think you find 50% of Auctions in Australia are not recorded or up for public display.
I have purchased and visited many auctions and it has never been noted for public stats

 

[ahl]

Auction is very much a 3 step process, just because it doesnt sell on the day out on the front lawn under the hammer, doesnt mean it has failed, or is over priced.

I have worked on several properties that have sold above their reserve after auction (one in particular achieved nearly 100k over the price it was passed in at two weeks earlier).

As stated by Loren above, not everyone interested in the property is able to stick their hand up on the day so they sit and wait in hope that it is passed in so their conditions can be considered by the owner.

I would ring the agent asap if you are keen on the property because they may be negotiating with someone right now and it could be sold without anyone knowing. One property I sold recently was passed in and then sold (still under auction conditions) an hour after everyone had left the auction.

Cheers

 

[Muffinman]

It seems like many were passed in http://www.reao.com.au/showthread.php?p=11290#post11290