Interesting Auction strategy , Wham Bam and it's over

Just doing our home work in terms of keeping our eyes on our local market and went to an Auction yesterday in Beechworth Rd , Pymble .

Packed house , Chat to agent before and they said they had had several bids before the day up to 1.7 . We thought for the vendor that was a pretty good price. Certainly much more than we thought it was worth. It had a certain amount of quaint charm , but functionally it had major problems ( eg one pokey bathroom , small ensuite size on the upper level for three bedrooms , one of which you had to walk through to get to the main bedroom ).

So the auctioneer gave his spiel , mentioned that there were people who wanted to negotiate different terms ( why hadn't they sorted that out prior to the auction .... )

Said he had the right to exercise on Vendor bid , which he did straight away at 1.75 Mill . After probably less than 30 secs he stopped the auction , no attempt to engage the audience . Then said we will now enter negotiations with interested parties and said than you for you attendance.

We missed out of our afternoons entertainment ...:(:(

I struggle to see the logic of what they did . Not even giving the auction process a chance to work it's magic in a hot market.

Cliff
 
Very strange. Either the auctioneer eas keen to get to his next appointment or they didn't want to start low and faff around but leave the negotiations open to all parties who had put their cards on the table but not finalised terms pre-auction.

providing they negotiated the deal that day it would still be under auction conditions with a S66w unconditional.
 
I've seen this once before and thought it was the most amateurish auctioneer i've ever seen before or since. It was with a Ray White franchise. Certainly put me off ever using them to sell, though would buy from them of course
 
Perhaps they had a good offer - say $1.8 M - but couldn't buy under auction conditions. So have a quick look if there is any interest around that - if not, close auction and continue other negotiations.

The offer may have come too late to totally cancel the auction.
 
Perhaps they had a good offer - say $1.8 M - but couldn't buy under auction conditions. So have a quick look if there is any interest around that - if not, close auction and continue other negotiations.

The offer may have come too late to totally cancel the auction.

But if I'd offered 1.7 but was prepared to go higher and they did this , no way would I bid higher against the Vendor .

I'd just say , well , I offered 1.7 and I haven't seen a higher bid . If the vendor wants 1.75 they can pay it ......

If they start stuffing around afterwards and then say well we have an offer of 1.8 I'd say , well , put it up to auction . That's what I came here for ....

Cliff
 
It sounds like they knew that no-one was ready to buy at auction there and then. But that they had several good offers to work with. Auctioneer still wants to get paid, so they did what they did.

In this case, they are only putting on a show for the next customer that wants to give a listing to this agency. They can then demonstrate that there auction strategy worked - as they wil have tied up the sale by then (they hope).
 
It sounds like they knew that no-one was ready to buy at auction there and then. But that they had several good offers to work with. Auctioneer still wants to get paid, so they did what they did.

In this case, they are only putting on a show for the next customer that wants to give a listing to this agency. They can then demonstrate that there auction strategy worked - as they wil have tied up the sale by then (they hope).

Auctioneer still gets paid even if the auction doesn't go ahead. I know that because it just happened to us.
 
Auctioneer still gets paid even if the auction doesn't go ahead. I know that because it just happened to us.

Whenever wwe were booking an auction as part of the sales campaign, the auctioneer expected payment to hold the booking, set aside the required staff/turn away other bookings etc
 
Whenever wwe were booking an auction as part of the sales campaign, the auctioneer expected payment to hold the booking, set aside the required staff/turn away other bookings etc

That was the case with us just a week ago. It was only $500 so not a worry, but our first thought was "great, we save $500". Once it was explained I realise why we have to pay, and have no issues with paying it. I just never really thought about it until it happened to us.

There have been a lot of things that have been "firsts" and things I've never thought of that have hit us lately. It has been a steep learning curve :eek:.
 
It sounds like they knew that no-one was ready to buy at auction there and then. But that they had several good offers to work with. Auctioneer still wants to get paid, so they did what they did.

In this case, they are only putting on a show for the next customer that wants to give a listing to this agency. They can then demonstrate that there auction strategy worked - as they wil have tied up the sale by then (they hope).

So far it hasn't .

I chatted to a couple of people on the way out , and the consensus was we were all unimpressed with how it was handled. Sat Evening the property was listed as offers over 1.75 , but now it's by negotiation .

http://www.realestate.com.au/property-house-nsw-pymble-116037011

Both my wife and I thought the pre auction offers up to 1.7 were a really good price for the vendor . For around 2.2 you will get a new or as new house in a better position , bigger with a much better layout and nothing to do.

Cliff
 
Both my wife and I thought the pre auction offers up to 1.7 were a really good price for the vendor . For around 2.2 you will get a new or as new house in a better position , bigger with a much better layout and nothing to do.

I don't know values down there, but this is a gorgeous house (albeit a small kitchen). I'd much prefer this over a new house. This is just such a pretty house, packed full of character.
 
I don't know values down there, but this is a gorgeous house (albeit a small kitchen). I'd much prefer this over a new house. This is just such a pretty house, packed full of character.

Did you also notice the small shower room on the second level with the walk through bedroom to get to main bedroom .

Yes it has lots of " Character " , but IMHO , its tired with many elements needing updating if you want to get it to near new standards .

The photo's are very effective ( I agree ) , but when we actually went through the house we were disappointed. I like older houses with lots of character , but if I'm going to buy something like that ( we weren't thinking of that ) , I'd like a design that works well.

If it sells over 1.75 I'll be really happy .

Scott , east side does have the more expensive houses , but I don't think the west has the same stigma that it used to have . It was something I was aware of when I was growing up , but it's not something my kids would pay any attention to .

Cliff
 
Did you also notice the small shower room on the second level with the walk through bedroom to get to main bedroom .

Yes it has lots of " Character " , but IMHO , its tired with many elements needing updating if you want to get it to near new standards .

The photo's are very effective ( I agree ) , but when we actually went through the house we were disappointed. I like older houses with lots of character , but if I'm going to buy something like that ( we weren't thinking of that ) , I'd like a design that works well.

I didn't notice the small shower, but meant that generally speaking, I'd prefer this house over a brand new, cookie cutter new one. Our house has stacks of character but someone wanting a new house with ensuite etc, would not buy it.

We've had several old, quality houses like this. I just prefer them to brand new.

Someone would buy our house who just falls in love with it, quirky decor and all. We would take our decor with us, but like house dressing, it all combines to allow someone to picture themselves living there.

I do agree with you that photos make places look fabulous, and it is usually a disappointment when you see the house "in the flesh". That is why I find it incredibly difficult to pinpoint a market rent for our houses because everything looks so much better on re.com than in the flesh.
 
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