Bungled Auction?

[BayView]

UPDATE:

The house is now on the market as a private sale for $925k.

 

[The Y-man]

Why did you have an auction if there was no interest?

Several contracts had been sent out - so there was always a chance (usual "Yes I'll be there tomorrow not"). Having/Not having auction about $200 difference - so in the bigger picture, not that much to take a punt on.

Cheers,

The Y-man

 

[Tuppence]

auctions suck because the vendor can bid - distorts market value.

Surely it only becomes market value when the vendor bid meets the buyers' offer? The vendor can place as many bids as they like, if no real buyer offers more, that don't make it market value - it's just an ambit claim.

 

[pennyk]

Evand i know you like to profess to know all about the real estate industry but you are wrong on this one.

Agents will open with a high vendor bid if they know that there will be not enough competition at the auction to carry the bidding past the reserve price.

Its not done for for listing purposes, I have never come across anyone in my office trying to list a property off the back of a passed in price. That is ridiculous.

Maybe the situation is different from state to state.

I have certainly seen the situation evand described. I went to an auction a few months ago. The final bid from actual buyers was $900K. The vendor then put in a vendor bid of $1 million, which essentially closed down the auction, and the property was passed in. The only reason to have that final vendor bid was so the agents could tell people that it was passed in at $1 million, to keep the offers over that level. (eventually sold a month or so later for around $1.15million.)
Pen