Disclosed reserve auction

[NedKelly]

In mooching around the properties for auction I came across an auction where they have disclosed the reserve price prior to the auction. This is the first time I have ever seen this, has anyone ever seen this before? I didn't think it was allowed.

http://www.realestate.com.au/property-house-qld-nerang-116226703

 

[andrew_de_a]

Why wouldn't it be allowed?

 

[NedKelly]

Why wouldn't it be allowed?

I give up, why wouldn't it?

 

[Tulamalula]

then why don't they just put the property on the market for the reserve, weird

My builder today was told the reserve for an auction on tomorrow - even told him they thought it was too high, not the same story he gave me on the phone ... oh it'll go for ie 50-80K more

 

[Chris B]

I don't know about QLD laws but I can't imagine why it would be illegal.

fyi - It was apparently purchased in 2008 for $426k and according to Pricefinder should be worth about the same now. Looks strange to have the pool in the front yard but at least that means it gets more sun.

 

[andrew_de_a]

then why don't they just put the property on the market for the reserve, weird

Because they would ideally like more than the reserve...

 

[Tulamalula]

Then they could say from $399K

 

[Scott No Mates]

It's a ruse. If they have disclosed the reserve then the agent is still holding the right to use the vendor's bid to push things along or to get it passed in at a figure which is more palatable.

 

[Richard Feynman]

I went to an auction today.

Chatted to the agent, he told me straight up that the vendors had bought elsewhere and the reserve was $601,000 and they would definitely be selling today.

Only two active bidders. Maybe 5 registered.

It went for $600,000.

No vendor bid used.

 

[railer]

This situation happened in Rowville a couple of years ago (saw it on some television show). Seller set a ridiculously low reserve, much to the chagrin and nervousness of his family. Come auction day, hundreds of people gathered in the street (definitely not something you'd expect in Rowville) and the seller was successful in obtaining around 30-40% more than his reserve.

 

[Brady]

This situation happened in Rowville a couple of years ago (saw it on some television show). Seller set a ridiculously low reserve, much to the chagrin and nervousness of his family. Come auction day, hundreds of people gathered in the street (definitely not something you'd expect in Rowville) and the seller was successful in obtaining around 30-40% more than his reserve.

30-40% above reserve doesn't tell us too much... How much above market value prior to auction?

 

[Mick C]

I went to an auction today.

Chatted to the agent, he told me straight up that the vendors had bought elsewhere and the reserve was $601,000 and they would definitely be selling today.

Only two active bidders. Maybe 5 registered.

It went for $600,000.

No vendor bid used.

where was this?