Mortgagee in Possession

[Jude H]

Hi to all,

Not a fan of auctions so my knowledge is limited. Went to a mortgagee in possession this morning and would like some futher details. Have searched this site and found that:

A pre auction offer will not be accepted but you can make that offer to try and condition the price.

However I could not find any details on whether or not there is a reserve or highest bid wins .....regardless of price.

I'm in VIC and would really appreciate further info or a website to have a look at.

Cheers

Jude

 

[simonjulie]

Hi Jude
We bought one some years ago after it had already been passed in at auction.
It was pretty easy because there where two other parties still trying to haggle over the price. We came along when the agents and the bank where sick of the whole thing so we put in an offer 10K above the latest haggle and had it accepted on the spot(Lucky hey) That property has been + ve cash flow and outstanding growth ever since.
The lesson we learned was not to get too caught up in negotiations.
We recently came across a property in ACT that had been put up for auction with no reserve. No offers would be accepted prior to the auction. The agents ploy was to tell everyone that the property would sell for around 140-180K. It was a real dump very neglected. Similar properties in the area where selling around 230-270K all done up.On auction day it drew a big crowd and sold for 220K(the people who bought that one will have to wait a while for it to grow in value after they spend $$$ on the reno and such)certainly not one for investors.
One of my rules for negotiation is to be in first and ready to act or wait in the wings for a bit to see where the cracks start to appear.
Kind regards
Simon