Dummy bidder wins the auction at $590k

I have a different view about auctions to most people and think that all the stupid rules put in place, that everyone seems to ignore anyway, should be thrown away and it should basically be a free for all.

So what if the owner bids to get the price up, that doesn't mean that everyone else has to bid as well. If a stooge walks in, bids and wins, then surely that's his problem not the other bidders. The golden rule is to work out what your maximum price is and don't go over it. If the auctioneer and buyer keep bumping the price up just walk away to the next auction or don't try and buy at an auction.
 
Hi NedKelly, I don't agree. I see it as cheating. Not everyone knows as much about property and people tend to get emotional when it comes to buying home for family especially at auctions. Why should vendor be determining the price through dummy bidding? the buyer determines the price and not the vendor. When you go to buy a property do you care what the vendor thinks? Or do you put an offer so you could get the property for the best and lowest price possible? It's a choice to go down the auction path, plus having a reserve along with a vendor bid. So what you are saying doesn't make much sense to me. They might as well keep their house.

Further, the agent has obviously been defensive and has marked it 'SOLD' on realestate website. I still stick to believing the auctioneer was in on it - shouldn't he be the one sticking to the rules (given he has the education and the license) instead of leaving that dummy bidder aside and convince others to buy then and there. Actually now that it was known he DID NOT want to buy it, it would have only been fair to re-conduct the auction as he was the one who jacked up the bids to begin with. If the starting bid was $450k it would have made sense for him to gradually increase the bids rather than smiling and bidding $500k - must have the vendors interests at heart and not his own pocket as he was the one backing out. The look on his face for winning was classic...I'd be overjoyed if I won what I wanted...but he looked rather stunned.
 
Hi NedKelly, I don't agree. I see it as cheating. Not everyone knows as much about property and people tend to get emotional when it comes to buying home for family especially at auctions. Why should vendor be determining the price through dummy bidding? the buyer determines the price and not the vendor. When you go to buy a property do you care what the vendor thinks? Or do you put an offer so you could get the property for the best and lowest price possible? It's a choice to go down the auction path, plus having a reserve along with a vendor bid. So what you are saying doesn't make much sense to me. They might as well keep their house.

Further, the agent has obviously been defensive and has marked it 'SOLD' on realestate website. I still stick to believing the auctioneer was in on it - shouldn't he be the one sticking to the rules (given he has the education and the license) instead of leaving that dummy bidder aside and convince others to buy then and there. Actually now that it was known he DID NOT want to buy it, it would have only been fair to re-conduct the auction as he was the one who jacked up the bids to begin with. If the starting bid was $450k it would have made sense for him to gradually increase the bids rather than smiling and bidding $500k - must have the vendors interests at heart and not his own pocket as he was the one backing out. The look on his face for winning was classic...I'd be overjoyed if I won what I wanted...but he looked rather stunned.
If you think that they have taken you for a ride then stick the spanners into them,ring up one of those crying game 6.30 tele shows and ask what they think
who knows they may have already have a file on the person,but never take auctions serious,the bloke in the suit with the hammer can take bids off birds flying past ,the front gate,the gum tree in the side of the house,just about anything because in those few fast minutes everybody goes into a different world,and agents know that 100% and play on it 1000%..
 
I think NedKelly has a valid point.

No one can make buyers bid.
If the vendor wants to keeping bidding up the price, they risk the chance of not selling.

It's really no different than the seller having a 'reserved price"
 
It seems that what happened at this auction, with all the rules, is no different to what might of happened if there were no rules. The auctioneer determines the price with vendor bidding anyway so I don't see much difference. There is nearly always a man on the phone putting in bids on behalf of some stooge so why not just scrap all the rules.

I am in Queensland where the rules are different anyway. We have all this rubbish where the auctioneer stops for a while and has a chat with the owners and then comes back and says the vendors are putting in another bid of some $500K above where the bidding stops and passes it in.
 
Some good news guys! My aunt just signed a contract for a place for $510k - 40k-50k below market value (4 bedroom townhouse) - (I hope the vendor signs it in one piece tomorrow morning!!! And that strata report is good! The complex looks well looked after but I personally have been burnt before by strata reports coming out bad) - only because:
1. Paint was required
2. A few doors needed replacement
3. New Blinds were needed
4. Rejected higher offers because they didn't want to sell below the asking price
5. Wife is more stubborn than the husband as per the agent and they didn't budge
6. Vendor bought another place and moved more than 6 weeks ago!
7. The agent took shocking photos - took my aunt around 6 weeks of it being on the market to actually go see it. My cousin took better picks than the agent :eek:

PLUS, the vendor is leaving a whole lot of furniture and junk because they can't be bothered moving the furniture which can really be sold to fund some of the rather minor reno!! The agent said he'd remove whatever she doesn't want to keep...so pretty cool

Can you believe this?! I'm surprised and pleased for her :)!
 
Yeh. If it did not sell for that apparent $590k, how do they expect it to go for $606k?! Unrealistic vendors!!
 
Unrealistic vendors!!

Not always.

Sometimes listing pressures by agents buying a listing and not accurately checking out the pysch of their prospect.

Some people cant be convinced that they made the "wrong decision" and to move on.

Maybe they simply dont need to sell..................and will only sell at their price, and eventually they will sell.

ta
rolf
 
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