Passed in properties at auction conversion rate %

[TMNT]

so I was at an auction on the weekend, where teh agent said statistics say 95% of passed in auctions end up selling to the highest bidder,

yes, definately sales talk but definitely not too far from the truth


my question is,
unless its got absolutely no interest, and someone is throwing in a bid to be the highest bidder,

I dont see how such a high % actually sell, the only times i can think of it being a high% of sales being is that if the reserve and highest bid amount is so close that a few extra $k wont make much of a difference

ive bid on a few auctions, and have been the highest bidder in a competivie bidding situation, and my take is "well mate/honey,if I didnt bid that figure that your vendor wants at auction, what gives the idea that im going to take it at that figure"

obviously conditions arent a problem for me, maybe for others

but I find the 95% gigure to be way too high, I would have expected it to be 30-50% more like it

 

[rowena]

more like the agent trying to make the auction all upbeat and make u think that you will miss out, to get you to be the highest bidder on the day even if property is passed in, so it makes u think u got a shot at the property for under the reserve price.

Property will only sell for what the owner is willing to let it go at, which may be a different figure to what the highest bidder thinks it is worth.

 

[Jake Milne]

These are the figures that are reported in VIC.

TOTAL AUCTIONS
This week: 744

S Sold at Auction: 424
SB Sold before Auction: 83
SA Sold after Auction: 3

Passed in: 234
Passed in on vendor's bid: 130


As to my knowledge there isn't any reporting on properties passed in but then sold. But you can work it out:

Based on the above, 744 properties were auctioned, of which 510 sold. There were 234 passed in of which 104 had bids on them. So... from this we can see that there were 104 properties that did NOT sell after being passed in AND having bidders present.

104 passed in, no sale, with bids... if that was only 5% of the properties passed in you'd need 2000+ auctions that were passed in and sold.

So considering that there were only 744 auctions in total... I think that the agent's "sale talk" is no where near accurate and is purely "sales talk".